HMG subsidiary, Samsung to develop AI-based vehicles

From left Hyundai Motor Chairman Chung Eui-sun, Mayor of Seoul Oh Se-hoon, and Song Chang-hyeon, 42dot CEO and president of the software-defined vehicle unit at Hyundai Motor Group. [Photo by CES Joint Press Corps]

Hyundai Motor Group recently announced a strategic partnership with Samsung Electronics Co. to accelerate its software-driven vehicle (SDV) strategy, a pivotal aspect of the carmaker’s future business plans.

Hyundai’s software development arm 42dot announced its collaboration with Samsung Electronics at the Consumer Electronics Show (CES) 2024 in Las Vegas on Tuesday. According to a deal signed by the two companies, Samsung Electronics will supply the Exynos development platform, featuring the latest System-on-Chip (SoC), for 42dot to create the SDV platform.

Samsung’s Exynos automotive processor is a specialized semiconductor with the latest Central Processing Unit (CPU) and Graphics Processing Unit (GPU) for automotive electronics. The partnership was officially sealed with a signing ceremony attended by Song Chang-hyeon, who is both 42dot chief executive and president of the software-defined vehicle unit at Hyundai Motor Group, and Park Yong-in, president of the system large-scale integration division at Samsung Electronics. The two sides will showcase the in 2025. The partnership will also extend to various other sectors, including joint marketing efforts.

In a separate announcement, Samsung Electronics hinted at the chances of a merger or acquisition (M&A) by the tech firm later in 2024.

“Major M&As can be a solution to the company’s future leadership,” Samsung Electronics Vice Chairman Han Jong-hee said during a press conference at CES.

To secure future technologies, Samsung Electronics has been actively making M&As and investments in five sectors, including AI, digital health, fintech, robotics, and automotive equipment, with 260 startups invested in by the tech leader over the past three years.

As part of the M&A strategy, the tech firm added a business unit in a recent companywide reshuffle, known as the New Business Taskforce, to explore novel opportunities and revenue sources.

Han emphasized that 2024 will see the progressive adoption of AI capabilities, with generative AI driving rapid development across industries. Samsung Electronics unveiled its first generative AI robot, called Ballie, at CES.

“We aim to increase the connectivity between mobile devices and home appliances in response to the fast-changing market,” Han said.