Amid the global shortage of microprocessors, which is already bringing the car industry to its knees, the South Korean government is trying to strengthen the local industry’s independence from global semiconductor suppliers, luring the two giants Samsung and Hyundai into an alliance to develop car microprocessors.
Obviously, the plan is primarily aimed at rescuing the car industry, but to the extent that there is an excess of production capacity, the beneficial effects could also be felt globally.
Both companies have signed an agreement with the Korean Institute of Electronic Technology, the Korean Institute of Automotive Technology, as well as the Ministry of Commerce, Industry and Energy. The two technology giants, Samsung Electronics and Hyundai Motor Co., are pursuing the same goal of tackling the semiconductor shortage in the automotive segment and establishing a stronger local supply chain.
It looks like Samsung and Hyundai will work together to develop state-of-the-art semiconductors, battery management chips, image sensors and processors for car infotainment systems.
A plan with long-term effects
The bad news is that, despite the optimism instilled by the authorities, the development of facilities for the manufacture of high-performance semiconductor products is a long process.
Another aspect that could cut the momentum of the two partners is the fact that the car semiconductor market is not as profitable as the segment dedicated to the smartphone industry, in the happiest case, the efforts will have long-term benefits by consolidating a faithful circle. of customers.
Thus, the aim seems to be to establish a stronger presence in the local supply chain with car semiconductors, in preparation for the increasingly popular niche of electric vehicles.