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Samsung to supply automotive chips to Volkswagen

By Kim Hye-ran & Kim Tae-gyu, UPI News Korea
Samsung to supply automotive chips to Volkswagen
Samsung Electronics announced it will supply automotive chips to Volkswagen. Photo courtesy of Samsung Electronics

SEOUL, Nov. 30 (UPI) -- Samsung Electronics announced Tuesday that it would supply automotive chips to Volkswagen.

The Exynos Auto V7, used for comprehensive in-vehicle infotainment systems, is in mass production. It's a component of Volkswagen's latest in-car application server.

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A global chip shortage is disrupting the auto industry.

The tech giant has also announced two other automotive chips, including the Exynos Auto T5123 for fifth-generation connectivity.

RELATED Samsung to build $17 billion semiconductor plant near Austin, Texas

"Smarter and more connected automotive technologies for enriched in-vehicle experiences, including entertainment, safety and comfort are becoming critical features on the road," Samsung Executive Vice President Park Jae-hong said in a statement.

"With an advanced 5G modem, an AI-enhanced multi-core processor and a market-proven PMIC solution, Samsung is transfusing its expertise in mobile solutions into its automotive lineup and is positioned to expand its presence within the field," he said.

PMIC refers to the power management integrated circuit.

RELATED Ford partners with semiconductor chip maker to tackle shortage

Experts say Samsung Electronics will ramp up its efforts to help ease the global shortage of automotive chips in the long run.

"In the past, Samsung Electronics did not pay much attention to automotive chips because their added values were not so high," Daelim University automotive Professor Kim Pil-soo told UPI News Korea.

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"Things are different now because the latest vehicles add more functionalities like connectivity and automotive driving. Hence, Samsung will put forth more efforts to roll out advanced automotive chips, which will help ease the bottleneck of the products' global supply," he said.

RELATED New outlook says semiconductor chip shortage will cost auto industry $210B

Kim said Samsung's strategy is to dominate the high-end market for automotive chips while leaving the low-end market to such conventional players as Taiwan Semiconductor Manufacturing Co.

On Wednesday, Samsung announced plans to build a $17 billion semiconductor manufacturing plant in Texas.

Earlier this month, Ford announced a partnership with semiconductor manufacturer GlobalFoundries to boost its supply.

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