Samsung Electronics plans to expand automotive chip market share

기사입력 : 2022-11-09 10:39

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Samsung Electronics is actively targeting automotive chip market amid the global chip recession.

According to industry sources on the 8th, Samsung Electronics said in a conference call, “We have solidified the growth base of the automotive SoC (System on Chip) business by expanding OEM orders and strategic cooperation with various companies in Europe, including the U.K.”

In November last year, Samsung Electronics unveiled three system semiconductors for next-generation vehicles, including ‘Exynos Auto T5123’, infotainment processor ‘Exynos Auto V7’, and PMIC (Power Management Integrated Circuit) ‘S2VPS01’. Since Samsung Electronics’ automotive chips have been installed in vehicles of global automakers such as Audi and Volkswagen last year, the company has continued to expand its customers. At the same time, the automobile image sensor ‘ISOCELL Auto 4AC’ has been also more widely applied.

The reason why Samsung Electronics is focusing on the automotive electronics business is that the automotive chip market continues to grow rapidly with the growth of the electric vehicle (EV) market. The average number of automotive chips used for existing diesel and gasoline cars is only 200-300, but it is known that about 1,000 chips are needed for EVs and 2,000 chips for autonomous driving cars.

According to market research firm IHS Markit, the global automotive chip market is expected to grow 9% annually from $45 billion (about 63.324 trillion won) last year to $74 billion (about 103.84 trillion won) by 2026. It is expected to reach $110 billion (about 154.363 trillion won) by 2030.

Market research firm IC Insights also expects the automotive chip market to grow 13.4% annually from last year to 2026.

The memory chip market has been recently slow down, while the automotive chip market has been growing as the automotive chip shortages have eased.

According to industry sources, global automotive chipmakers such as NXP, ST Microelectronics, Texas Instruments, and Renesas saw their sales increase in the third quarter. Samsung Electronics expects demand for automotive chips to remain strong next year.

By Global Economic Reporter Mi-yeon Soh ; Translate by Gounee Yang