Samsung has joined forces with Hyundai Motor Co. to collaborate with the South Korean government and some agencies to tackle headlong the global chip shortage. The agreement recently signed by both companies and the Korean Electronics Technology Institute, the Korea Automotive Technology Institute, and the Ministry of Trade, Industry, and Energy will foster a more robust local supply chain for vital semiconductors needed for many production processes within the country.
While the local automotive industry will be the primary beneficiaries of the new collaboration between Samsung and Hyundai, there are possible global implications if the partnership is successful. Samsung and Hyundai will develop next-generation super-efficient semiconductors, battery management chips, image sensors, and application processors for in-car entertainment/ information systems.
The semiconductor industry is a long-term and capital-intensive industry. Therefore the dividends from the partnership, if sustained, could take several years to become visible. Samsung is already pursuing research in an alternative wafer production template, with a focus on 12-inch wafers. This could also revolutionize chip making across different types.
The moves by both companies are long-term efforts to shore up the development of the automotive industry. They could be a culmination of the corporate social responsibility initiatives of both companies. The goal remains to establish a strong supply base for the local production of semiconductors for the automotive industry in its home market.
In line with its desire to bridge the supply gap in global chip shortage, Samsung Electronics had announced expansion plans for its existing chip manufacturing plants. The company has also made progress in developing innovative solutions like the new PixCell LED intelligent headlight technology, which is being deployed specifically to the automotive industry.
The fine details of the Samsung Hyundai collaboration including timelines and deliverables will be unveiled soon.
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