Samsung and Hyundai Will Fight Against the Global Chip Shortage Together

The global chip shortage is far from over, and what’s even worse is that nobody knows for sure when things would come back to normal, and carmakers would no longer have to turn to painful decisions like suspending the production at some of their facilities.
Samsung is betting big on a new generation of processors 1 photo
Photo: Samsung
But one thing is for sure, though. The global chip shortage teaches everybody in the industry a few important lessons, and Hyundai and Samsung have apparently received the right message.

The two companies have joined forces for a partnership whose purpose is to help deal with the chip shortage and work together on a series of tech products to be used on cars.

For example, the new agreement signed on May 13 with the Ministry of Trade, Industry, and Energy, the Korea Automotive Technology Institute, and the Korea Electronics Technology Institute, is supposed to help the two companies build application processors, semiconductors, image sensors, and battery management chips for cars.

Needless to say, Samsung will use its know-how in the tech field, as the company is already a leader in the manufacturing of mobile chips, while Hyundai will contribute with resources related to the implementation in the automotive sector.

Samsung is betting big on new-generation chips, as the South Korean tech behemoth also plans to develop its very own custom processor that will be used on laptops. Based on Exynos, the in-house chip already used on mobile devices, the upcoming silicon would allow for important performance boosts and more efficient power usage.

Samsung and Hyundai, however, don’t plan to start the production of chips right away, as the tech company needs to prepare its semiconductor lines for the automotive industry. At this point, Samsung builds chips using 12-inch wafers, while cars require an 8-inch design. Therefore, the company first needs to prepare production lines and only then help Hyundai boost its presence in the EV and autonomous vehicle market.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories