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 

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