Samsung Foundry is struggling to win orders from its rivals for its 3nm process. However, its older processes are very reliable and continue to be trusted by many customers. Samsung could soon win a large order from its compatriot.
Hyundai reportedly wants Samsung to produce the processors needed for its self-driving cars. They will be manufactured using Samsung’s automotive semiconductor line, which is based on the 5nm process.
Samsung to produce processors for Hyundai and Tesla’s self-driving cars
Like many other automakers, Hyundai designs its own processors for its cars and needs a foundry. Samsung is the second largest foundry in the world after TSMC and has produced processors for many automakers.
Korean media outlets have stressed that Hyundai and Samsung are seriously discussing the deal as it could benefit both companies. Hyundai will have a stable domestic supply from Samsung, reducing its dependence on foreign companies like TSMC.
Working with a Korean company could also help Hyundai reduce costs. Hyundai is expected to launch a self-driving car using its own processor in 2026. Tesla has also selected Samsung to manufacture processors for its next-generation self-driving cars, which are expected to be mass-produced in the next three to four years.
Having Hyundai as a customer is a big boost for Samsung Foundry, which is struggling to commercialize its 3nm process and is burning through a lot of money. In addition, this partnership could help Samsung attract more customers in the self-driving car market, which is expected to be worth $29 billion by 2030.