The Korean government appears to require the country to become more self-sufficient within the automotive semiconductor sector. So for this, Samsung has teamed up with Hyundai Motor Co. to figure with the South Korean government and a number of other organizations to deal with the worldwide chip shortage front-on.
The agreement, which was recently signed by companies and therefore the Korean Electronics Technology Institute, the Korea automotive engineering Institute, and therefore the Ministry of Trade, Industry, and Energy, will help to strengthen the country’s local supply chain for critical semiconductors utilized in many manufacturing processes.
While the new relationship between Samsung and Hyundai will primarily benefit the local automobile sector, the partnership could have global repercussions if it succeeds.Samsung and Hyundai will create next-generation super-efficient semiconductors, battery management chips, image sensors, and application processors for in-car entertainment and knowledge systems.
The semiconductor industry may be a capital-intensive and long-term business. As a result, the partnership’s dividends, if sustained, could take several years to manifest.Samsung is already performing on a replacement wafer manufacturing template, with a stress on 12-inch wafers. this might also transform chip manufacturing generally .
Both firms’ actions are a part of a long-term strategy to support the car industry’s growth. they could be the top of both firms’ corporate social responsibility activities.The goal remains to create a solid supply base for semiconductor fabrication in its home marketplace for the car industry.
