Samsung, Hyundai to develop smart car chips

By Lee Joon-seung
SEOUL, July 16 (Yonhap) -- South Korea's Samsung Electronics Co. and Hyundai
Motor Co. will work together to develop advanced semiconductors used in smart,
eco-friendly automobiles, the government said Thursday.
The two companies will promote research on the development of the so-called
system-on-chips (SoC), an integral part of smart, fuel efficient cars, the
Ministry of Knowledge Economy said.
A total of 20 billion won (US$15.8 million) will be spent on developing smart
keys, automatic parking systems and battery sensor chips vital for hybrid and
electric-driven cars until August 2010, with the government shouldering 9 billion
won, it said.
South Korea currently relies on imports to meet its demand for SoCs. The country
is the fifth-largest carmaker in the world with 5.27 million units being
manufactured annually.
Hyundai is to outline specific system requirements for the chips it needs with
Samsung -- the world's largest memory chip manufacturer -- to make the
semiconductors. Hyundai Mobis and C&S Technology Inc. will also play a role in
the development.
"If all goes according to plan, locally made SoCs could be used in earnest
starting in 2012," a ministry official said.
He pointed out that development of car-related chips can be decisive for
maintaining competitiveness because the proportion of electronic parts vis-a-vis
overall manufacturing costs is expected to reach 40 percent in 2012.
yonngong@yna.co.kr
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