First Time
Samsung Electronics is set to supply Hyundai Motors with its Exynos Auto V920, an application processor (AP) which serves as the “brain” of the vehicle. This semiconductor handles the real-time operating information of the vehicle and processes high-definition videos and games that can be enjoyed within the car. This is the first time that Samsung Electronics is supplying an AP to Hyundai with the aim to begin distribution by 2025.
The Exynos Auto V920 has 1.7 times the central processing unit (CPU) performance compared to the previous generation. The neural processing unit (NPU), which aids in processing artificial intelligence (AI) operations at high speeds, also has seen a 2.7 times improvement in performance.
With Samsung Electronics and Hyundai Motors formalizing their semiconductor deal for cars, there is growing interest in the potential for further collaboration between the two leading Korean companies in securing a foothold in the future car market. Following this, there are expectations of expanding business intersections into batteries and autonomous driving fields after semi-conductors for vehicles and Organic Light Emitting Diodes (OLED). Both companies are expected to create a fantastic synergy in the global future car market.
This is the first time Hyundai is being supplied with an application processor (AP) that serves as the brain of the vehicle infotainment platform. Tasks such as voice-activated music and phone calls, providing real-time driving information to the driver, etc., are part of the AP’s role. Samsung, which is actively pursuing the high-specification vehicle system semiconductor market, plans to strengthen its market dominance with the supply to Hyundai Motors.
According to market research firm IHS, the size of the global automotive semiconductor market is expected to inflate from US$76 billion (approximately 98.8 trillion won) this year to US$143 billion (approximately 185.9 trillion won) in 2029.
The scope of collaboration between Samsung and the Hyundai Motor Group is expanding. Samsung Electronics has agreed to supply APs to Hyundai Motors following image sensors. Recently, it was revealed that Samsung Display supplied the Genesis with OLEDs for vehicles.
By supplying APs to Hyundai, Samsung Electronics not only secures a stable income base in the automotive system semiconductor business, but it also provides an opportunity to elevate its technical prowess. Hyundai, which had difficulties procuring automotive semiconductors in 2021-2022, is expected to diversify its semiconductor supply chain.
The scope of collaboration between the two groups is expected to expand into areas like solid-state batteries. Solid-state batteries are larger in capacity and safer than existing lithium-ion batteries. Samsung SDI plans to establish a mass-production system for solid-state batteries by 2027. Hyundai also plans to produce electric cars equipped with solid-state batteries as a pilot in 2025 and to begin mass production by 2030. There is speculation that Samsung SDI will supply Hyundai with solid-state batteries. Chairman Lee Jae-yong of Samsung Electronics discussed the status of solid-state battery research when he met with Chairman Chung Eui-sun of the Hyundai Motor Group twice, in May and July 2020.
There are also high expectations that Samsung Electronics and Hyundai will join hands in the autonomous driving sector. Samsung Electronics' Foundry (semiconductor contract manufacturing) business unit, which produces autonomous driving chips for Tesla, has been building substantial capabilities in this field. Hyundai, too, has been increasing its investments in this sector, including the establishment of an autonomous driving joint venture, Motional, in the United States in 2020.