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BusinessSamsung Electronics Realigns Focus from Automotive to AI Semiconductor Development

Samsung Electronics Realigns Focus from Automotive to AI Semiconductor Development

Samsung Electronics has announced a strategic shift in its semiconductor development, scaling back its efforts in automotive processors to concentrate on artificial intelligence (AI) chip design. This decision is part of a broader industry trend towards AI advancements, spurred by significant developments such as the rise of ChatGPT.

On July 3, reports revealed that Samsung’s System LSI division, which oversees chip design, has undergone a business and organizational restructuring. The primary aim is to prioritize AI chip development, resulting in the reassignment of personnel from the automotive processor project “Exynos Auto” (code name KITT3) to the AI System-on-Chip (SoC) team. Currently, the division has allocated 100 to 150 specialized design personnel to focus on AI chip design, marking a clear pivot in the company’s semiconductor strategy.

Samsung’s venture into the high-performance automotive semiconductor market began in 2018 with the launch of the Exynos Auto brand. Last year, the company introduced the Exynos Auto V920, built on a 5nm process, and initiated a partnership with Hyundai Motor Company, signaling its commitment to supporting the autonomous driving and electric vehicle sectors.

However, the landscape of semiconductor demand has shifted. Since late 2022, the emergence of AI technologies and tools like ChatGPT has prompted Samsung to reconsider its focus. Additionally, the phenomenon known as the “electric vehicle chasm,” a temporary slowdown in demand before widespread adoption, coupled with global automakers such as Hyundai Motor Company and Tesla developing their own chips, has influenced Samsung’s strategic realignment.

A Samsung Electronics official commented, “The company’s organizational restructuring details have not yet been finalized.” This statement suggests that while the emphasis on AI chip development is evident, the specifics of the restructuring process are still being finalized.

Samsung’s strategic pivot reflects the growing importance of AI in the semiconductor industry and highlights the company’s adaptability in responding to evolving market dynamics. As the demand for AI technology continues to surge, Samsung’s restructured focus aims to position the company at the forefront of this transformative trend.

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