[News Article] Samsung, SK, LG team up with Hyundai Motor to create EV alliance
Samsung, SK, LG team
up with Hyundai Motor to create EV alliance
By Kim Hyun-bin, The
Korea Times - The Samsung, SK and LG business conglomerates are teaming up with
Hyundai Motor Group to create an electric vehicle (EV) alliance, according to
industry officials, Monday. The alliance envisions Samsung's autonomous-driving
semiconductors and SK's batteries being installed in EVs made by Hyundai and
Kia, while LG's organic light-emitting diode (OLED) instrument panels guide
drivers. Hyundai Motor Group,
which has emerged as a global EV powerhouse, is establishing close
collaborative relationships with Samsung, SK, LG, and other companies in
preparation for the era of future vehicles, including electric and autonomous
cars. "Synergy
effects are expected to occur through collaborations among domestic companies
which are anticipated to have a significant impact on the development of the
domestic industry," an industry official familiar with the matter said. The formation of the
alliance centered on the automotive group has been attributed to substantial
investments by Samsung, SK, and LG to enhance their competitiveness and
presence in the global automotive industry. Samsung Electronics invests
billions of won annually in automotive application processors (AP) and
foundries. Samsung Electro-Mechanics is also increasing investments in
multi-layer ceramic capacitors (MLCC) for EVs. In the major
components business, LG's affiliates compete for the top two spots globally.
Those affiliates are LG Display (panels), LG Innotek (camera modules), LG Magna
(powertrain) and LG Electronics (operating systems and infotainment systems).
In the battery sector, LG Energy Solution, SK on and Samsung SDI lead the
global market. There is increasing
recognition of the technological prowess of Korean automotive components in
overseas markets. Samsung Electronics supplies semiconductors for IVI systems
to Audi and Volkswagen. LG Display has been expanding its customer base since
2021 when it began supplying OLEDs for the digital cockpits of Mercedes-Benz. As the competition
for leadership in the global future car market intensifies, the alliance is
expected to strengthen. Hyundai Motor Group is actively engaging in
collaborations with domestic companies to establish a supply chain for key
components of future cars centered in Korea. This reduces transportation costs
and brings the advantage of having component suppliers in close proximity to
Hyundai's headquarters for real-time communication. Source:
https://koreatimes.co.kr/www/tech/2023/06/419_352786.html?utm_source=nans
2023.06.16