The Korean government appears to want the country to become more self-sufficient in the automotive semiconductor sector. So for this, Samsung has teamed up with Hyundai Motor Co. to work with the South Korean government and several organizations to address the worldwide chip shortage front-on.
The agreement, which was recently signed by companies and the Korean Electronics Technology Institute, the Korea Automotive Technology Institute, and the Ministry of Trade, Industry, and Energy, will help to strengthen the country’s local supply chain for critical semiconductors used in many manufacturing processes.
While the new relationship between Samsung and Hyundai will primarily benefit the local automobile sector, the partnership could have global repercussions if it succeeds.
Samsung and Hyundai will create next-generation super-efficient semiconductors, battery management chips, image sensors, and application processors for in-car entertainment and information systems.
The semiconductor industry is a capital-intensive and long-term business. As a result, the partnership’s dividends, if sustained, could take several years to manifest.
Samsung is already working on a new wafer manufacturing template, with an emphasis on 12-inch wafers. This could also transform chip manufacturing in general.
Both firms’ actions are part of a long-term strategy to support the automobile industry’s growth. They might be the pinnacle of both firms’ corporate social responsibility activities.
The goal remains to build a solid supply base for semiconductor fabrication in its home market for the automobile industry.