[Chip Talk] 'Gyeoulron' Crosses the Chasm, Electric Vehicle Semiconductor War

Automotive Semiconductor Market to Reach 140 Trillion Won by 2027
Advanced Technology Concentration... Opportunity to Prove Technical Expertise
High Reliability, Durability, and Safety Also Required
HBM Competition Expands to Automotive Market
Samsung Electronics to Develop HBM4E by 2027
SK Hynix Preparing for 4th Generation Product Mass Production
Competition Era for Automotive Memory and SSD
Industry Focuses on Strengthened Samsung-Hyundai Cooperation

Amid growing doubts about the future of semiconductor companies due to the recent 'winter loan' issue in the securities industry, electric vehicles (EVs) are emerging as a new breakthrough. According to industry sources on the 21st, the number of companies entering the development of vehicle semiconductors necessary for EVs is increasing, and as products under development by each company are being unveiled one after another, a full-fledged market competition atmosphere is beginning.

The average space of just over 2 pyeong (approximately 6.6 square meters) in an electric vehicle offers semiconductor companies unlimited opportunities. The industry believes that EVs require far more semiconductors than traditional internal combustion engine or hybrid vehicles. Various semiconductors are essential for different functions such as power management, safety systems, communication and networking, and infotainment systems, and AI-equipped vehicles require even more complex semiconductor solutions. This is a key reason why semiconductor companies are focusing on EV semiconductors as their next-generation growth engine.

Although EVs are experiencing a temporary demand stagnation (chasm) due to fire accidents and related battery issues, the dominant outlook is that demand will soon recover strongly, providing semiconductor companies with abundant work. Global market research firms have not revised their forecasts that the EV market will continue to grow despite the chasm. Omdia predicts that the vehicle semiconductor market will grow at an average annual rate of over 8% from last year through 2028, reaching a market size of 104.454 billion KRW (approximately 140 trillion KRW) by 2027.

Vehicle Semiconductors Concentrating ‘Advanced Technology’

Vehicle semiconductors incorporate more advanced technology than other semiconductors. They have many requirements and technologies tailored to meet them. Since the space inside a vehicle is limited, they must become smaller and more integrated. Therefore, for companies, vehicle semiconductors serve as an excellent means to demonstrate their technological capabilities. Vehicle semiconductors must first have high reliability and durability. Cars are used by drivers in various locations and can be exposed to diverse climatic conditions. They may face extreme situations such as droughts, floods, and heavy snow. There is also the possibility of long hours of operation in such environments. For this reason, vehicle semiconductors must operate stably even under extreme conditions. Quality standards require a warranty of over 15 years. The lifespan must exceed 10 years. Typically, drivers purchase a car and use it for nearly 10 years, so vehicle semiconductors are required to have a matching lifespan. Recently, safety requirements have become more stringent. After EV fire accidents, drivers are sensitively monitoring safety issues. Vehicle semiconductors are widely used in vehicle safety-related systems and must meet safety certifications. Safety systems using semiconductors include Anti-lock Braking System (ABS), airbag control, lane departure warning, and autonomous driving. Related vehicle semiconductors installed near high-temperature areas such as the engine room and electric motor must operate reliably at high temperatures. Semiconductor companies face the challenge of establishing processes that can produce and supply vehicle semiconductors reliably in line with automobile manufacturing speeds.

HBM Competition Shifts to Vehicles

The competition for High Bandwidth Memory (HBM), which intensified due to high demand for AI chips, is showing signs of entering a new phase as the vehicle semiconductor market grows. HBM is used in vehicles to enhance the computing capabilities of AI chips installed therein. Leading companies in this field, Samsung Electronics and SK Hynix, have quickly started developing vehicle products, tightening the competition. Samsung Electronics recently announced plans to develop vehicle HBM4E by 2027. Its capacity and bandwidth are increased to 48 gigabytes (GB) and 2 terabytes (TB) per second, respectively, surpassing general HBM. This is to meet the higher performance and capacity requirements of EV autonomous driving compared to general HBM. SK Hynix, leveraging its world-leading HBM technology, is already supplying HBM2E to Waymo, a Google subsidiary. Currently, SK Hynix is the only company that has commercialized vehicle HBM. SK Hynix is also preparing for mass production of the 4th generation vehicle HBM3.

Both companies are releasing various vehicle semiconductors beyond HBM. Samsung Electronics supplies vehicle memory ‘LPDDR4X’ used in Qualcomm’s vehicle platform ‘Snapdragon Digital Chassis.’ This product supports vehicle infotainment (IVI, in-car information systems) systems with a maximum capacity of 32GB. Recently, Samsung succeeded in developing the industry’s first vehicle solid-state drive (SSD) applying 8th generation V-NAND. SK Hynix has taken its first step into the vehicle SSD market, receiving Automotive SPICE Level 2 certification. Automotive SPICE is an international standard evaluating the quality capability of automotive software development.

Samsung Strengthens Cooperation with Hyundai Motor

The industry is also paying attention to the cooperation trends between Samsung Electronics and Hyundai Motor Company. Although relations were strained after Samsung’s entry into the automotive business in 1994, a technological alliance was formed and recently materialized following a meeting in May 2020 between Hyundai Motor Group Chairman Chung Euisun and Samsung Electronics Chairman Lee Jae-yong at Samsung SDI’s Cheonan plant. Cooperation is taking place in various fields such as communications, batteries, and displays, with semiconductor collaboration becoming more active. Samsung Electronics plans to supply Hyundai Motor with the infotainment processor ‘Exynos Auto V920’ in 2025. This product supports entertainment features such as real-time driving information, high-definition multimedia playback, and high-spec gaming for drivers. It is equipped with ten automotive CPUs from semiconductor design company ARM and supports high-performance, low-power DRAM, enabling fast and efficient control of up to six high-resolution displays and twelve camera sensors. To monitor driver status and quickly perceive surroundings for a safer driving environment, the performance of the neural processing unit (NPU) has also been enhanced.