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Samsung Electronics to focus on automotive chips, aiming to become the top automotive semiconductor player by 2025

Update time : 2023-01-06 09:53:46

According to media reports, Samsung Electronics is concentrating on automotive semiconductors with the goal of becoming the world's top automotive semiconductor company by 2025. This is to make up for the slump in the memory chip business in the face of rapidly growing demand from the automotive industry.

Currently, Samsung Electronics leads the global DRAM and NAND markets, but lags behind Micron Technology in the automotive semiconductor sector.
With the development of cars to "smart phones on wheels", automotive semiconductor market demand is growing dramatically. The average internal combustion engine car needs 200 to 300 semiconductors, but self-driving cars need more than 2,000, because infotainment, advanced driver assistance systems, cameras, sensors and other car functions need to use semiconductors.
Samsung Electronics expects that L5 level self-driving cars that do not require driver intervention will have a DRAM capacity of about 300gb, 50 times more than before, and a NAND capacity of 5tb, about 32 times more than before.
According to IHS Markit, the automotive semiconductor market started the year at $45 billion and is expected to grow to $110 billion by 2030, with a CAGR of about 9%. Despite the overall decline in demand from the semiconductor industry, the market outlook for next year remains bright.
Noh Geun-chang, head of research at Hyundai Motor Securities, said, "Despite the economic downturn, the automotive semiconductor industry will grow to $67 billion next year, up 15.5 percent from 2022, due to increased demand for autonomous driving and electric vehicles."
Growth will be particularly rapid in the highly competitive in-vehicle memory chip market, in which Samsung Electronics is involved. For example, graphics DRAM is essential in the era of self-driving cars, where Samsung Electronics is leading the way in automotive infotainment with ever-expanding functionality and capacity. Last month, the company developed graphics memory GDDR6W using advanced packaging technology. the company also focuses on automotive system chips such as Exynos Auto.

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