Samsung Electronics, a major South Korean company, is making waves in the automotive industry. Particularly in the “in-car infotainment” market, which encompasses entertainment and information systems used inside vehicles, Samsung Electronics is rapidly gaining prominence. This article will explain how Samsung is successfully advancing in this field in a way that is easy to understand.
What is Infotainment?
First, what is “infotainment”? The term combines “information” and “entertainment,” referring to a range of systems used inside cars, such as navigation, music, movies, and the internet. With the advancement of autonomous driving technology, cars are increasingly transforming from mere transportation to “spaces for relaxation and enjoyment,” making infotainment more important. Samsung Electronics aims to capture a significant share of this growing market.
Samsung’s Strategy with Automotive DRAM
Infotainment systems in cars require fast processing of large amounts of data, which is where “automotive DRAM” (Dynamic Random-Access Memory) comes in. DRAM temporarily stores data, allowing for quicker processing.
Currently, the leading company in this field is the American company Micron, which holds a 44% share of the automotive DRAM market. However, Samsung Electronics has begun a concerted effort to capture this market share. Samsung currently holds 32% of the market, placing it in second place, and plans to begin mass production of the next-generation “LPDDR5” DRAM this year, which will be supplied to Qualcomm’s infotainment systems.
Market Growth and Samsung’s Potential
The automotive semiconductor market is rapidly expanding. Last year, the market was valued at $76.2 billion (approximately ¥10.1 trillion), and it is expected to grow to $115.2 billion (approximately ¥15.3 trillion) by 2028. This growth is largely driven by the proliferation of electric and autonomous vehicles. Traditional internal combustion engine vehicles use 200-300 semiconductors, while electric vehicles require over 1,000, and autonomous vehicles need more than 2,000 semiconductors.
Given this market growth, Samsung Electronics is not only focusing on DRAM but is also producing the “Exynos Auto,” an application processor for vehicles. This processor acts as the “brain” of the car, supporting advanced infotainment functions and autonomous driving capabilities.
Samsung’s Push in the AI Sector
Samsung Electronics is also pushing forward with innovations in the AI (Artificial Intelligence) sector, beyond just automotive semiconductors. IBM recently announced the “Telum2” AI processor and the “Spire” AI accelerator, both produced using Samsung’s cutting-edge 5-nanometer foundry process. These chips are expected to offer unprecedented processing speed and power efficiency, which has garnered significant attention. This initiative broadens Samsung Electronics’ potential for creating new revenue streams in the AI domain.
Organizational Reforms and Future Prospects
Since the appointment of Vice Chairman Kyung-Hyun Kwon in May, Samsung Electronics has been focused on strengthening its core competitive edge. A significant part of this effort has involved breaking away from a bureaucratic organizational culture to create a more efficient and flexible structure. This large-scale organizational reform allows Samsung to respond more quickly to market changes, enhancing its competitiveness.
Looking ahead, Samsung Electronics is likely to further solidify its position in the automotive semiconductor market and achieve new successes in the AI field, reinforcing its role as a global technology leader.
Conclusion
Samsung Electronics is aiming to lead the future automotive market through innovations in in-car infotainment and the AI sector. With the mass production of new DRAM and advancements in AI technology, Samsung Electronics is poised for significant growth. Keep an eye on Samsung Electronics as it continues to make strides in these dynamic fields.
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