The technological transformation in the auto industry has helped make Samsung the largest chip manufacturer in the world as many automakers use digital technology in their vehicles.
In 2017, Samsung posted record profits and overtook Intel for the first time in many years. Intel had dominated the chip industry from 1992, but now Samsung has outflanked Intel to post an annual revenue of USD 69.1 billion as compared to Intel’s USD 62.8 billion.
The automotive industry requires the kind of advanced memory chips that Samsung specializes in. Intel still dominates the PC market, but Samsung has diversified and the results are plain for all to see.
Samsung’s latest quarterly report says that there is immense demand for high-density memory products for cloud servers and for chipsets required for automotive electronics and AI. While cloud servers are used for a wide range of automotive infotainment features, AI is mainly used for automated and semi-automated driving and the market for these is expected to grow significantly in the coming years.
Last year, Samsung had launched a USD 300 million fund for backing startups and other companies working on developments related to autonomous driving. If Samsung manages to beat other established auto companies like GM, Ford and Volkswagen in this segment, it could emerge as a market leader and make hefty gains.
