After landing chip manufacturing contracts from Apple and Tesla, South Korean tech giant Samsung has reportedly secured yet another major deal this time with Hyundai Motor Company to produce semiconductor chips for its upcoming vehicle lineup. According to a report by ZDNet Korea, Samsung Foundry has won the order to manufacture 8nm automotive chips designed by Hyundai for its future models. The new chip, developed in-house by Hyundai, is reportedly part of the company’s push toward autonomous driving technology. Development is expected to conclude by 2028, while mass production is planned to begin in 2030. Although earlier reports suggested Hyundai was working with Samsung on 5nm self-driving chips, that project has been delayed until next year. The upcoming 8nm chip will reportedly debut in premium vehicles, particularly under Hyundai’s luxury brand Genesis. Sources indicate that Hyundai opted for the 8nm process because it strikes a balance between performance and cost-efficiency, offering near-5nm capabilities at a lower expense. The chips are expected to be used across multiple brands Hyundai, Kia, and Genesis while the 5nm variant will be reserved for top-tier models. This deal marks a strategic win for Samsung Foundry, which has long sought to close the gap with Taiwan’s TSMC. After losing major clients like Nvidia and Qualcomm in recent years, Samsung is now regaining ground with a growing list of high-profile customers in the automotive and tech sectors.a With a new strategy, the company is aiming to attract brands for its 2nm process node. It has reportedly sent a sample chip to Qualcomm. If Qualcomm is satisfied with the performance and stability of Samsung’s version of the Snapdragon 8 Elite Gen 5, it could be mass-produced next year and used in some Galaxy phones. However, the company does not want to rely solely on smartphone chips. Recently, it has been working to secure chip orders from various companies, including AI chip makers (Preferred Networks (PFN), Rebellions, and Tenstorrent), automotive parts manufacturers (Valens Semiconductor), and automakers (Hyundai and Tesla).
Samsung to produce 8nm chips for Hyundai’s next-generation vehicles
