Hyundai Disbands Semiconductor Strategy Office Amid Reorganization
As the automotive industry continues to evolve and face fierce competition, Hyundai has made a critical move by disbanding its Semiconductor Strategy Office, as reported by ETNews. The decision comes as Japanese automakers Nissan and Honda announce plans to merge by 2026, while Hyundai reorganizes its internal structure.
Industry sources have revealed that the responsibilities of the Semiconductor Strategy Office have been transferred to the Advanced Vehicle Platform (AVP) division and procurement departments. Vice President Jae-Seok Chae, who led the office and joined Hyundai from Samsung Electronics in 2022, has stepped down during the reorganization.
While the system-on-chip (SoC) development team remains intact, the disbandment of the office signals a setback for Hyundai’s ambitions of developing in-house chips. A Hyundai spokesperson explained that the reorganization aims to streamline capabilities and enhance synergy within the company.
With the autonomous driving chip market dominated by key players like Mobileye, Tesla, NVIDIA, and Qualcomm, Hyundai has heavily relied on Mobileye’s ADAS chips. The closure of the Semiconductor Strategy Office prompts a reassessment of Hyundai’s semiconductor projects, particularly a key program for autonomous driving chips set for mass production by 2029.
According to the Korea Economic Daily, Hyundai is considering outsourcing the production of its self-driving automotive chips to Samsung’s foundry division. The company is reportedly interested in adopting Samsung’s 5-nm-based SF5A process, leveraging Samsung’s expertise in producing auto chips.
Notably, Samsung secured a deal in July 2023 to manufacture Tesla’s next-gen Full Self-Driving (FSD) chips for use in the U.S. automaker’s Level-5 autonomous vehicles, as reported by the Korea Economic Daily. Hyundai’s collaboration with Samsung’s foundry division could potentially strengthen its position in the autonomous driving chip market.
