Samsung Electronics aims to target the semiconductor market with 74 trillion won ahead of the’super gap’

Enter 2021.01.15 06:00

Increasing the installation of semiconductors in vehicles with the emergence of electric and autonomous vehicles
Annual average growth of 8%, expected to be 74 trillion won in 2026
The former semiconductor market, the Korean, Japanese, and American competitions… There is no strong person
Samsung Electronics enters the market with foundry competitiveness

Samsung Electronics, which has declared its vision to achieve the world’s No. 1 in semiconductors by 2030, is focusing on automotive semiconductors among non-memory (system) semiconductors. With the emergence of electric vehicles and autonomous vehicles in the future, the automotive semiconductor market is expected to grow to about 74 trillion won in 2026, and is aiming to expand its market share. In particular, Samsung Electronics has set up a strategy to quickly penetrate the automotive semiconductor market by adding its foundry (semiconductor commissioned production) microprocessing capabilities.

According to market research firm IHS Markit on the 15th, the size of the automotive semiconductor market last year is estimated to be 38 billion dollars (about 4,73 trillion won), a 9.6% decrease from the previous year due to the novel coronavirus infection (Corona 19). Initially, IHS Markit predicted that the automotive semiconductor market would shrink by 20% from the previous year due to sluggish automobile production due to Corona 19, but it revised its forecast as automobile production increased in the second half of last year.

In the mid to long term, the use of semiconductors in automobiles is expected to increase further thanks to the active driver assistance system (ADAS) and autonomous driving. It is known that 200-400 semiconductors are emerging as the core of automobile parts in recent years. It is used not only in the electrical field such as automobile cameras and sensors, but also to control mechanical parts such as engines, transmissions, and four-wheel drive systems.

The industry predicts that if automotive semiconductors develop in the form of integrated chips (SoCs, system-on-chip) in which multiple devices are controlled by one chip, the number of semiconductors per unit will decrease, but the degree of technology intensity will increase.

Currently, in the automotive semiconductor market, German Infineon, NXP in the Netherlands, Renesas in Japan, TI (Texas Instruments) in the US, and STMicroelectronics in Switzerland are at the forefront. However, it is characterized by a similar share of leading companies without distinct market powers such as DRAM, mobile application processor (AP) and foundry.

Although Samsung Electronics is a latecomer, it is planning to quickly enter the leading position with the competitive edge of micro-processing foundries below 10 nanometers (nm·1 billionth of a meter), which are advantageous for high performance and low power. Samsung Electronics started supplying automobile APs called’Exynos Auto’ to Audi compact sedan A4 in 2019, and introduced the 5th generation mobile communication (5G) telematics control unit (TCU) introduced at CES this year to the BMW next-generation electric vehicle iNext ( i-NEXT). It is also targeting the ADAS and autonomous vehicle markets with IsoCell Auto, a CMOS image sensor for automobiles (CIS).

Park Yoo-ak, a researcher at Kiwoom Securities, said, “It is necessary to pay attention to Samsung Electronics’ entry into the automotive semiconductor market, centered on Exynos Auto, Isocell Auto, and 5G TCU.” Among them, semiconductor post-processing companies are expected to benefit from this.”

Recently, automotive semiconductors are having difficulty in supply and demand. The proportion of semiconductor production was adjusted as automobile production decreased due to Corona 19, and sales of home appliances and PCs increased. Then, a semiconductor shortage phenomenon appeared in the cars that recovered production. While Volkswagen, Toyota, Honda and FCA have stopped factories or adjusted production due to semiconductor supply and demand problems, Hyundai Motor Company and GM Korea are also paying attention to semiconductor inventory management. It is said that there is a possibility that the semiconductor business for Samsung Electronics’ automobiles will become more prominent.

According to IHS Markit, the automotive semiconductor market this year is expected to grow 18% from the previous year. In addition, it is expected to increase the market size by an average of 7% by 2026, and the total market size in 2026 is expected to reach 67.8 billion dollars (about 74 trillion won).