Samsung's Foundry division has been struggling to win clients for its 3nm process, but the company's legacy processes are solid and continue to see considerable demand for customers. Samsung could soon win a significant order from a compatriot.
According to reports, Hyundai is interested in having Samsung manufacture the chips needed for its self-driving cars. These chips would be made on Samsung's automotive semiconductor line that's based on the 5nm process.
Hyundai will join Tesla in having Samsung make its self-driving chips
Many car manufacturers, including Hyundai, design their own chips. They need to find a foundry where these chips can be produced. After TSMC, Samsung is the second largest foundry in the world, and already makes chips for many companies in the automotive industry.
Korean news media highlights that Hyundai and Samsung are in serious discussions about this deal which could be a win-win for both companies. Hyundai will benefit from working with Samsung as that would ensure a stable supply chain for its self-driving cars that's based within South Korea, reducing its reliance on foreign companies like TSMC.
Working with a Korean company might also enable Hyundai to reduce its costs. Hyundai is expected to launch self-driving cars that use its own chips by 2026. Tesla has already picked Samsung to make its next-gen Full Self-Driving chips that will be used in its Level-5 autonomous vehicles expected to be mass produced in the next three to four years.
Having Hyundai as its customers would be a major boost for Samsung Foundry which has been struggling to commercialize its 3nm process and has been bleeding cash. It would also help Samsung attract more clients in the self-driving vehicle market which is projected to be worth $29 billion by 2030.
