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Hyundai Motor and Samsung Electronics Strengthen Technical Cooperation, This Time on 'Smart Factory'

Hyundai Motor and Samsung Electronics Complete Smart Factory Technology Demonstration
Low-Power, Low-Cost 5G Specialized Network Manufacturing Technology to Be Unveiled at MWC in March

Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun are strengthening their cooperation to boost the competitiveness of South Korea's manufacturing industry. Amid fierce global competition for manufacturing supremacy, the two groups have joined forces to build smart factories, a core future technology.


Hyundai Motor announced that starting from March 3 next month at MWC25 Barcelona in Spain, it will unveil the '5G Specialized Network RedCap' technology jointly developed with Samsung Electronics. The 5G Specialized Network RedCap is a technology that provides 5G-level data processing speed and stable connectivity with a low-power, low-cost structure.


To overcome the limitations of the existing 5G specialized network, which had a high-power, high-cost structure, power consumption was reduced by simplifying terminal configurations and miniaturizing equipment. Samsung Electronics provided dedicated base stations and an integrated management system, while Hyundai Motor directly designed the finished car inspection terminals in collaboration.


Hyundai Motor and Samsung Electronics Strengthen Technical Cooperation, This Time on 'Smart Factory' Hyundai Motor Company and Samsung Electronics are testing the 'D Scan,' a complete vehicle unmanned autonomous inspection equipment applying 5G specialized network Redcap technology. Photo by Hyundai Motor Company

Hyundai Motor completed a demonstration of the 5G Specialized Network RedCap at Samsung Electronics' Suwon plant testbed in January this year. Domestically, it was applied to the assembly line at Ulsan Plant 3, and at Hyundai Motor Group Meta Plant America (HMGMA) in the United States, it was built in accordance with local regulations to operate about 200 automated logistics robots. The RedCap technology is also planned to be introduced at the Ulsan electric vehicle-only plant scheduled to start operation in 2026.


With the global market environment rapidly changing as the United States and China promote their own manufacturing industries, the cooperation between Samsung and Hyundai is seen as a strategic choice to maintain the competitiveness of South Korea's manufacturing sector. The United States is attracting electric vehicle and semiconductor manufacturing domestically through policies such as the Inflation Reduction Act (IRA), while China is accelerating the internalization of advanced technologies, shaking the positions of major companies. South Korea's manufacturing industry is also under pressure from high-cost structures and supply chain reorganization, making it urgent to find a breakthrough.


At one time, the two groups maintained a strained relationship. Conflicts arose with Hyundai Motor when Samsung entered the passenger car business, and official cooperation was virtually cut off afterward. However, with the transition to third-generation management, the relationship between the two groups changed. In 2020, Chairman Lee Jae-yong and Chairman Chung Eui-sun met in person, opening the door to dialogue, and since then, the scope of cooperation has gradually expanded.


Cooperation has taken place in various fields such as automotive semiconductors, connected cars, software-defined vehicles (SDV), and robot batteries. Hyundai Motor is promoting the adoption of Samsung Electronics' Exynos Auto semiconductors in its next-generation vehicles and has linked Samsung Electronics' SmartThings IoT service to connected cars. In January last year, Hyundai Motor's global software center, FortyTwoDot, announced plans to develop an AI-based SDV platform using Samsung's automotive semiconductors, and the day before yesterday, Hyundai Motor and Samsung SDI announced joint development of batteries dedicated to robots.


Hyundai Motor and Samsung Electronics Strengthen Technical Cooperation, This Time on 'Smart Factory' An automated material handling robot (AMR) in mass production operation at the Hyundai Motor plant equipped with a 5G private network. Photo by Hyundai Motor


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