[CES 2024] Samsung, Hyundai deepen partnership in car tech

Industry

Published: 10 Jan. 2024, 16:46

[CES 2024] Samsung, Hyundai deepen partnership in car tech

42dot CEO Song Chang-hyun, right, and Park Yong-in, head of the System LSI business at Samsung Electronics, sign an agreement on Tuesday at CES 2024 in Las Vegas. [42DOT]

LAS VEGAS — Samsung and Hyundai, the largest chipmaker and automaker in Korea, extended their partnership as the two teamed up to develop smart cars.

42dot, a software company owned by Hyundai Motor, said Tuesday it inked an agreement with Samsung Electronics to use its Exynos processors to develop platforms for software-defined vehicles (SDVs) by at least 2025. The agreement was made Tuesday at CES 2024 in Las Vegas.

SDVs, or what's known in the industry as a “smartphone on wheels," are equipped with an over-the-air (OTA) system that can update cars' software with the latest features over time.

Under the deal, Samsung will provide its latest Exynos Auto processors that are equipped with automotive central processing unit and graphics processing unit that can help offer real-time driving situations and provide high-quality maps.

“With the cooperation with Samsung Electronics, 42dot will offer safe and enjoyable transportation, which expands to new services though users have no expertise in complicated technology,” said 42dot CEO Song Chang-hyun.

Hyundai Motor and Kia recently invested 1.05 trillion won ($790 million) in 42dot, bringing their combined shares to 93.2 percent. It marks their third round of investment as the two Hyundai companies invested 47 billion won in 2020 and another 477.2 billion won in August last year.

Hyundai and Kia are expected to convert all of their cars to SDVs by the end of 2025.

The deal is significant in that Hyundai and Samsung have recently been expanding their cooperation in the automobile part. Samsung Electronics supplies chips and image sensors to Hyundai, while Samsung Display provides organic light-emitting diode panels to Hyundai.

Samsung SDI in October clinched a seven-year battery supply deal with Hyundai Motor for its EVs in Europe. It's the first battery deal ever between the two companies.

BY SARAH CHEA [chea.sarah@joongang.co.kr]