Samsung will receive an order from Hyundai to produce automotive chips

After Samsung received orders from Apple and Tesla to produce semiconductors, the South Korean company has signed a contract with Hyundai Motor Company, according to media reports. Samsung Foundry will now produce chips for Hyundai’s cars, which is great news for a company that has struggled in the semiconductor business in recent years.
According to ZDNet Korea, Samsung Foundry has received an order to manufacture an 8nm chip developed in-house by Hyundai. This chip is intended for autonomous driving systems. Development is said to be completed by 2028, with mass production starting in 2030.
It was previously reported that Hyundai was also planning to use 5nm chips, to be manufactured by Samsung, for autonomous driving, but that project is rumored to be postponed until next year. These more advanced chips are intended exclusively for premium cars, particularly Genesis-brand models.
Hyundai’s choice of 8nm technology is due to its balance between performance and cost. These chips will be used in Genesis, Hyundai and Kia, while 5nm solutions will remain the domain of the luxury segment.
Samsung Foundry has been trying to compete with Taiwan’s TSMC for several years, but has lost a number of major customers over the past 3-4 years, including Nvidia and Qualcomm. Now the company is looking to regain market confidence by betting on 2nm process manufacturing.
According to insiders, Samsung has already sent Qualcomm test samples of the chips. If the U.S. manufacturer remains satisfied with the quality and stability of Samsung’s version of the Snapdragon 8 Elite Gen 5, mass production could begin as early as next year — and those chips would likely be used in some Galaxy models.
Samsung doesn’t intend to rely solely on smartphone orders, however. The company has recently been actively expanding its customer portfolio, winning orders to produce chips for AI companies (such as Preferred Networks, Rebellions, and Tenstorrent), automotive electronics makers (including Valens Semiconductor), and car companies like Hyundai and Tesla.
Samsung has been actively expanding its portfolio of customers, winning orders to produce chips for AI companies (such as Preferred Networks, Rebellions, and Tenstorrent), automotive electronics makers (including Valens Semiconductor), and car companies like Hyundai and Tesla.