The deal marks a major milestone in Samsung’s plan to diversify its semiconductor business beyond smartphones.
Samsung Foundry Wins Big With Hyundai Chip Deal
Samsung has secured a major contract to manufacture semiconductor chips for Hyundai Motor Company, according to a report from ZDNet Korea. The chips, based on Samsung’s 8nm process, will be used in a wide range of Hyundai, Kia, and Genesis vehicles starting in 2030.
This development is not only a win for Samsung’s foundry division but also a strategic move to strengthen its position in the growing automotive semiconductor market.
Why Hyundai Chose 8nm for Mass Market Cars
The chips Samsung will fabricate are being designed in-house by Hyundai, with development scheduled to complete by 2028. Mass production will begin in 2030, positioning Hyundai as one of the few automakers to produce its own chips.
While Hyundai is reportedly also working on more advanced 5nm chips for luxury Genesis models, the 8nm node was chosen for broader vehicle lineups due to its:
- Cost-efficiency
- Reliable performance
- Mature manufacturing process
This makes 8nm chips ideal for semi-autonomous driving systems and vehicle control units in mass-market vehicles.
A Turning Point for Samsung Foundry
Samsung has struggled in recent years to maintain foundry clients, losing major players like Qualcomm and Nvidia to rival TSMC. But this Hyundai deal, alongside recent partnerships with Apple and Tesla, signals a potential comeback.
To regain competitiveness, Samsung is:
- Focusing on automotive and AI sectors
- Pushing 2nm process nodes for next-gen applications
- Expanding client base beyond smartphone SoCs
In fact, Samsung recently sent sample 2nm chips to Qualcomm. If testing goes well, Snapdragon 8 Elite Gen 5 chips manufactured by Samsung could power future Galaxy devices.
Samsung’s Automotive Chip Strategy Gains Speed
Samsung is not limiting its foundry ambitions to just consumer electronics. The company is actively seeking contracts from:
- AI chipmakers: Preferred Networks (PFN), Rebellions, Tenstorrent
- Automotive suppliers: Valens Semiconductor
- EV manufacturers: Tesla and now Hyundai
By doing so, it aims to future-proof its semiconductor business and reduce dependency on the volatile smartphone market.
What This Means for the Auto Industry
As vehicles become increasingly dependent on advanced computing, in-house chip design and custom fabrication are becoming strategic priorities for automakers. Hyundai’s partnership with Samsung sets the stage for a new era of auto-tech collaboration in South Korea.
For Samsung, it’s an opportunity to establish itself as a trusted foundry partner for the automotive sector, a space historically dominated by TSMC and Intel.
