Silicon Works to supply automotive semiconductors to Daimler, Germany

Instrument panel and central display chip
ASIC with integrated video chip and T-CON

Silicon Works, a fabless semiconductor company affiliated with the LX Group, separated from the LG Group, supplied automotive semiconductors to German automaker Daimler. Silicon Works, which entered the microcontroller (MCU) market last year, plans to expand its automotive semiconductor business as a new growth engine.

According to the industry on the 23rd, Silicon Works reportedly supplied chips for automotive instrument panels (clusters) and central display (CID) to Daimler. It is for low-end vehicles launched at the end of last year. Specifically, it is not known which brand under Daimler. When it comes to passenger cars, Mercedes-Benz is the dominant.

The chip is an ASIC in which a video processor for automobile display and a timing controller (T-CON) are integrated into one chip. It was developed for about 2-3 years at the request of LG Electronics’ Automotive Parts (VS) division, a Tier 1 (primary partner) company, and mass-produced last year.

A Silicon Works official said, “It is meaningful in that the integrated chip was supplied through a Tier 1 company, not a display panel maker.”

Silicon Works’ cluster chip has an algorithm to improve the visibility of automobile displays. It features a local dimming function that effectively expresses black and a high luminance expression (RGBW) function that increases the luminance. In addition, the algorithm that removes crosstalk, which is a distortion phenomenon in 3D images, is differentiated. It also obtained ISO26262 FSM certification, a reliability standard for automotive semiconductors.

In addition, it has been supplying semiconductors to Hyundai-Kia Motors’ Veloster, K9, and K7 since 4 years ago. The chip is a sensor for automobile brakes and accelerator pedals, and a driver IC for a diode (LED) and rear combination lamp (RCL) that turns on when the brake pedal is pressed.

Silicon Works’ automotive cluster chip

Silicon Works plans to focus on research and development (R&D), taking not only automotive semiconductors, but also silicon carbide (SiC) semiconductors and microcontroller units (MCUs) for home appliances as next-generation growth engines. This is to reduce dependence on LG Display and diversify sales. The MCU made by Silicon Works is said to be installed in some LG Electronics home appliances.

Growth is expected to continue in the display field as well. The production of organic light-emitting diode (OLED) TV panels by customer LG Display is expected to surge this year as well. New sales generated by LG Display last year’s supply of organic light-emitting diode (OLED) panels for Apple’s iPhone 12 are expected to continue this year. Silicon Works recorded 1 trillion won in sales for the first time since its establishment last year. Sales reached 1,161.8 billion won, a 34% increase from the previous year, and operating profit was 94.2 billion won, an increase of 99.6% year-on-year.

Silicon Works is scheduled to be incorporated into LX Holdings from May 1st along with four companies including LG International (including Pantos), LG Hausys, and LG MMA. Mirae Asset Daewoo Researcher Kim Chul-joong said, “If Silicon Works moves to the LX group, we expect expansion of customers and diversification of semiconductor, battery, and electronic applications.”

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