Bloomberg– Samsung Electronics and SK Hynix have gradually set their sights on automotive semiconductors as global demand for high-performance semiconductors for electric vehicles increases rapidly, according to BusinessKorea.
The two companies, although the world’s memory semiconductor market occupies the first and second position, but in the automotive semiconductor market does not have much influence.
Strategy Analytics data show that South Korea’s share of the global automotive semiconductor market is only 2.3% in terms of sales in 2019.
In the oil-vehicle segment, automotive semiconductors are generally less expensive and therefore less profitable, and oil-vehicle replacement cycles are also generally longer, lasting more than 10 years. However, with the rapid growth of electric vehicles and smart driving cars, the demand for high-value-added semiconductors has increased, and Korean consortia are actively responding to this trend by increasing their investment in the semiconductor sector.
Samsung Electronics predicts that by 2030, automotive semiconductors will grow into the top three semiconductor industries along with semiconductors for servers and mobile communications.
The electric vehicle market has been growing rapidly since 2020, and the number of semiconductors installed in electric vehicles is increasing dramatically due to advances in electronic component technology. There are 100 to 200 components in a fuel car, while smart cars that support autonomous driving require at least thousands of components.
Samsung Electronics is currently planning to respond to the demand for high-performance automotive semiconductors with next-generation storage solutions such as LPDDR5X and GDDR7. Its goal is to take the number one position in the automotive memory market by 2025.
