Samsung Electronics is adjusting the speed of its automotive semiconductor development as part of a strategic realignment to focus on artificial intelligence (AI) chips. This shift comes amid a broader industry trend towards AI and recent developments like ChatGPT, which have significantly influenced Samsung’s chip design strategy.

On July 3, it was reported that Samsung’s System LSI division, responsible for chip design, underwent a business and organizational restructuring to prioritize AI chip development. This restructuring has led to the reconsideration of the next-generation automotive processor “Exynos Auto” (code name KITT3). Personnel who had been working on this chip have been reassigned within the division to the AI System-on-Chip (SoC) team, which is now the focal point of Samsung’s design efforts. Currently, 100 to 150 specialized design personnel are concentrated in this division for AI chip design.

Samsung Electronics’ journey into the high-performance automotive semiconductor market began in 2018 with the announcement of the Exynos Auto brand. Last year, the company launched the Exynos Auto V920, which uses a 5nm process, and declared semiconductor cooperation with Hyundai Motor Company, signaling its commitment to the era of autonomous driving and electric vehicles.

However, since the end of 2022, the rise of AI and developments like ChatGPT have prompted Samsung to revise its chip design strategy. The recent phenomenon of the electric vehicle chasm—a temporary slowdown in demand just before mass adoption—and the fact that global automakers like Hyundai Motor Company and Tesla are developing their own chips have also influenced this strategic shift.

A Samsung Electronics official stated, “The company’s organizational restructuring details have not yet been finalized.” This indicates that while the focus on AI chip development is clear, the specifics of the restructuring are still being worked out.