Samsung Shifts Focus in Automotive Chip Market
Date: October 8, 2026
Read Time: 2 min
Samsung is reportedly shifting its strategy in the automotive chip sector, winding down the development of new automotive application processors (APs) under its Exynos Auto lineup. This decision follows years of effort aimed at expanding its semiconductor business into the automotive market, which started with the launch of Exynos Auto in 2018.
Background
Exynos Auto chips function as the brain of vehicles, managing infotainment systems and other computing tasks essential for software-defined vehicles (SDVs) and autonomous driving. Samsung has also collaborated with major automotive partners like Hyundai and BMW, securing contracts to supply vehicle chips.
Challenges Faced
Despite these efforts, the automotive AP business has struggled to become profitable. The stringent safety and reliability standards required for automotive chips lead to high development costs, sometimes exceeding 100 billion won per processor, while the market price for each chip ranges from $20 to $40. As a result, Samsung’s System LSI division faces challenges in achieving a substantial market share against competitors like Qualcomm.
Future Directions
While Samsung will continue supplying chips for existing contracts with Hyundai and BMW, it plans to stop further developments once these orders are fulfilled. The company intends to redirect resources toward mobile processors and image sensors, areas where it sees more potential for growth. In particular, Samsung began mass production of image sensors for Apple earlier this year and is also working on the Exynos 2700 chip for future Galaxy models.
As the automotive market moves forward, Samsung’s reallocation of resources indicates a strategic pivot aimed at reinforcing its capabilities in more lucrative sectors.
