Samsung Electronics’ foundry business is reportedly in discussions with BYD and several other Chinese automakers to manufacture next-generation autonomous-driving system-on-chips (SoCs), according to a report by Seoul Economic Daily citing industry sources.
The talks center on automotive chips based on Samsung’s advanced 4nm and 2nm semiconductor manufacturing processes, as Chinese vehicle manufacturers seek access to leading-edge chip production technologies.
Demand for Advanced Automotive Chips
The discussions come as automakers increasingly require more powerful semiconductor solutions to support advanced driver assistance systems (ADAS) and higher levels of autonomous driving.
These applications require significant computing performance, low power consumption, and efficient thermal management to process large amounts of vehicle data in real time.
Industry sources cited by the report said Chinese automakers are looking beyond domestic semiconductor suppliers for advanced manufacturing capabilities.
Potential Expansion Beyond Existing Automotive Customers
If agreements are finalized, Samsung’s automotive semiconductor customer base in China could expand beyond Nio, which already uses Samsung’s 5nm manufacturing process for autonomous-driving chips.
Last week, BYD introduced its Xuanji A3 intelligent driving chip, which the company described as China’s first 4nm intelligent driving processor.
However, automotive manufacturers generally rely on specialized semiconductor foundries for the production of advanced chips rather than manufacturing them internally.
“The core area Samsung Foundry is currently focusing on most in the Chinese market is automotive electronics,” an industry official was quoted as saying.
“We are actively conducting technical discussions with major Chinese automakers to produce next-generation automotive SoCs using Samsung Foundry’s advanced processes.”
Semiconductor Manufacturing Landscape
According to industry sources, China’s largest foundry, SMIC, remains focused primarily on mature process technologies and faces limitations in advanced-node manufacturing capacity.
While SMIC reportedly produces chips in the 7nm class, much of its advanced production capacity is said to be allocated to strategic customers, including Huawei.
Sources cited in the report said much of SMIC’s remaining production is concentrated in 14nm and larger process nodes, creating opportunities for overseas foundries offering more advanced technologies.
“With SMIC still showing limitations at the most advanced processes, Samsung Electronics is the most realistic alternative Chinese companies can choose, aside from TSMC,” another industry official said.
“The fact that Samsung has its own automotive chip design and mass production experience, such as Exynos Auto, through its System LSI division is also a factor that boosts Chinese companies’ trust.”
Focus on Future Autonomous Driving Platforms
Samsung’s 4nm manufacturing technology is viewed as having achieved stable production yields, while the company’s 2nm gate-all-around process is attracting attention as automakers and technology firms seek more powerful and energy-efficient chips.
Industry observers said successful cooperation in automotive semiconductors could potentially lead to broader collaboration in areas such as artificial intelligence and high-performance computing, although export control regulations remain a factor in cross-border technology partnerships.
“Chinese companies’ interest in Samsung Foundry is less about evading sanctions and more about finding alternatives in advanced processes,” a semiconductor industry source said.
“If they secure trust in automotive chips, the scope of cooperation could expand to AI chips and high-performance computing chips going forward.”
The reported discussions underscore the growing importance of advanced semiconductor manufacturing in the automotive industry as vehicles increasingly rely on AI-powered computing platforms and autonomous driving technologies.
