Samsung will make chips for most Hyundai cars

Jenith

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After receiving orders from Apple and Tesla to make semiconductor chips, the South Korean firm has reportedly secured the contract to manufacture semiconductor chips for Hyundai Motor Company cars. This is great news for the company, as it had been struggling in the chip segment over the past couple of years.

Samsung Foundry could make 8nm chips for Hyundai​


A report from ZDNet Korea claims that Samsung Foundry has bagged the order to fabricate 8nm semiconductor chips for Hyundai Motor Company. This autonomous driving chip has reportedly been designed by Hyundai in-house, and its complete development will be finished by 2028. The chip will then be mass-produced by Samsung Foundry in 2030.

While there have been reports about the company making 5nm autonomous driving chips for Hyundai Motor Company, that order is anticipated to have been delayed to next year. This flagship chip will reportedly be used only in premium models, like cars made by Hyundai's sub-brand Genesis.

Hyundai reportedly chose an 8nm process for its chip due to its cost-effectiveness while still offering comparable performance to 5nm chips. The chip will be used in several cars across Genesis, Hyundai, and Kia brands. The 5nm chip will only be used in high-end cars.

Samsung is trying to diversify its chip client base​


Samsung Foundry has been trying to compete with TSMC for years. However, it could win back clients from its Taiwanese rival. In fact, over the past 3-4 years, Samsung Foundry lost clients to TSMC. Those clients include Nvidia and Qualcomm.

With a renewed strategy, the company is trying to attract brands for its 2nm process node. It has reportedly sent a sample chip to Qualcomm. If Qualcomm is satisfied with the performance and stability of Samsung-made version of the Snapdragon 8 Elite Gen 5, it could be mass produced next year and could be used in some Galaxy phones.

However, the company doesn't want to just depend on smartphone chips. So, of late, it has been trying to get chip orders from a variety of brands, including AI chip makers (Preferred Networks (PFN), Rebellions, and Tenstorrent), automotive parts makers (Valens Semiconductor), and carmakers (Hyundai and Tesla).

Image Credits: Hyundai

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