Tesla Done, Samsung Now Eyes Autonomous Driving Chip Deal with BYD

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A few months ago, Samsung signed a multi-year deal with Tesla to manufacture its autonomous driving chips. The Korean firm is now aiming to secure a similar deal with Chinese EV giant BYD. If the contract happens, it could improve the firm’s foundry business while solidifying its position in the automotive semiconductor space.

SMIC’s technology gap and capacity limits may open the door for Samsung

According to Sedaily, Samsung is in discussions with BYD and other Chinese automakers to make autonomous driving chips. The chips could use 2nm and 4nm manufacturing processes. It is worth mentioning that the Korean firm already makes 5nm chips for Nio, another Chinese EV company.

The main reason for these talks is the gap in semiconductor technology. China’s largest foundry, SMIC, currently makes chips at the 7nm level. This puts it behind global leaders like Samsung and TSMC. The Korean firm’s 4nm process has reached the mature stage with stable yields. Likewise, its next-gen 2nm process using Gate-All-Around (GAA) technology has become the preferred node for major global clients, including Tesla.

Moreover, SMIC’s most advanced production capacity is fully booked for clients such as Huawei. As a result, Chinese automakers seeking high volumes of advanced chips appear to be struggling. Samsung has solid experience in designing and mass-producing its own automotive chips, such as Exynos Auto.

All things considered, Chinese automakers now see Samsung as a reliable option for advanced chip manufacturing. Industry watchers believe that, after automakers, Chinese tech firms such as Alibaba, Tencent, ByteDance, and Baidu may also turn to the Korean foundry. The reason is that they are developing their own AI semiconductors.

So, Samsung’s foundry business looks promising in the coming years. The company has continued to struggle to secure profit in its foundry division for several years. Now that the client base is growing, it should not take a long time to see profits. In fact, reports suggest this could happen as early as next year.

Written by

Binay Konwar

Binay Konwar started his blogging journey in 2014 and has since written plenty of tech articles. At present, he is working as a News Writer at SammyGuru, covering everything about Samsung. He holds a Master's degree in Mathematics, but his real passion lies in tech and writing. In his free time, he enjoys playing chess and watching movies.

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