July 17, 2009 08:47
Hyundai Motor and Samsung Electronics will develop technology for an "intelligent" car after signing a memorandum of understanding on joint development of semiconductors on Thursday.
The two will develop semiconductors that enable automatic parking and image recognition, together with a smart key and a battery sensor.
Hyundai is to provide the specifications, and chip makers like Samsung Electronics and C&S Technology will develop semiconductors based on them. They are to be ready for installation in cars in 2012.
The collaboration between Korea's two biggest conglomerates could put the country in prime position in the auto-semiconductor market, whose future value is estimated at US$20 billion.
Korea currently depends on the U.S., Japan and Europe for the import of nearly all its car chips, but the Samsung-Hyundai pact could replace imports worth W1.9 trillion (US$1=W1,268) and increase facility investment to W440 billion by 2013, the Ministry of Knowledge Economy said.
Hyundai Motor and Samsung Electronics agreed to invest a total of W20 billion, including a W10 billion government subsidy, in joint research and development.
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