[Exclusive] Samsung and Tesla Join Forces on 5nm Automotive Semiconductors

[Asia Economy Reporter Ki-min Lee] Samsung Electronics is partnering with Tesla to develop 5nm-class automotive semiconductors, which will be key components for fully autonomous vehicles. With the recent expansion of electric vehicles and autonomous vehicles boosting the automotive semiconductor market, and the supply shortage caused by the COVID-19 pandemic compounding the situation, Samsung Electronics is expanding its automotive semiconductor division as a future business area.

According to industry sources on the 25th, Samsung Electronics' foundry division is currently conducting research and development (R&D) on 5nm-class system semiconductors to be installed in Tesla's autonomous vehicles. The 5nm semiconductors, produced using extreme ultraviolet (EUV) lithography, are advanced products that only a few companies worldwide, including Samsung Electronics and TSMC, can manufacture. ▷Related articles on pages 2 and 3

Until now, Samsung Electronics has supplied Tesla with 14nm-class chips produced using argon fluoride (ArF) lithography rather than EUV. The area of expanded cooperation between the two companies this time is the infotainment (IVI) product line utilizing 5nm semiconductors. IVI includes various semiconductors such as processors, neural processing units (NPU), security integrated circuits, memory, and display driver ICs (DDI). Ultimately, these chips process information input from sensors, lighting, and communication within the vehicle and provide it on the screen, playing a crucial role in achieving fully autonomous driving. Especially since 5G has been globally deployed since last year and development has accelerated with the race to lead 6G in the US, China, and Europe, the performance of chips installed in IVI is expected to become even more important.

Tesla, which has led the autonomous vehicle sector, also necessarily requires Samsung Electronics' technological capabilities. Tesla plans to upgrade IVI to make vehicles comparable to smartphones on wheels. Samsung Electronics is currently focusing on improving semiconductor yield per wafer. Once Tesla provides the chips developed by Samsung, vehicle testing will be conducted, followed by yield adjustments for mass production before finalizing the contract.

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Samsung Electronics' recent personnel restructuring in the automotive semiconductor field is also interpreted as being related to enhancing Tesla-related technological capabilities and stabilizing yield. At the end of last year, Samsung Electronics reorganized its structure by reallocating personnel from the advanced driver-assistance systems (ADAS) field related to autonomous driving to the automotive IVI sector. If Samsung succeeds in mass-producing products for Tesla, it could surpass Taiwan's TSMC and attract attention from other automakers. Taiwan's TSMC, the world's number one foundry, unveiled the world's first 7nm-class automotive design platform in May last year, and Samsung Electronics is skipping the 7nm process and moving directly to 5nm development, indicating fierce competition.