Samsung Exynos chips to power Audi’s in-car entertainment system

Samsung Electronics will supply its "Exynos" application processor to German automaker Audi, the first time for the Korean giant to provide its self-developed chip to a car maker. Samsung is expanding its Exynos sales channel to the automobile chip market, a sign that it is aggressively making inroads into the auto parts technology business.

According to automobile and electronics sources on Wednesday, Exynos will be embedded on Audi's cars in 2019 at the earliest. Application processor is a systems chip that serves as a brain of electronics products like the CPU in computers. Exynos is Samsung Electronics' mobile AP brand used in Samsung's flagship smartphones. Samsung has been providing Audi with memory chips including 20 nano DRAM. As Samsung now plans to provide system chips, the Korean tech giant will secure a strong foothold in its efforts to advance into the automobile semiconductor market.

The Exynos model for Audi is the premium Exynos 8 Octa applied on Galaxy S7 smartphones last year. Audi will use the chip in its in-car infotainment system, which provides information and entertainment by using displays including navigation. Exynos helps run four displays at the same time thanks to fast processing speed and multi support.

In-car chips require higher creditability than mobile chips, since any ruptures can paralyze car systems and endanger the driver and passenger alike. The fact that Samsung's AP is provided to Audi means that the durability and stability in driving are sufficiently verified.

"With Exynos processors, Samsung has proven its technology leadership in performance, reliability and innovative packaging solutions," said Alfons Pfaller, head of Infotainment Development at Audi.

Making public parts contracts is very rare in the semiconductor industry, as the contract establishment itself is kept in secret when the client refuses since there is a confidentiality observance clause. "It seems that Samsung Electronics has pursued marketing effects as it publicly announced its entry into vehicle chips market with its self-developed processors while letting potential customers be aware of its product quality," an industry source said.

The deal is likely to facilitate Samsung Electronics' auto parts business. Samsung has already proposed to take over U.S.' car parts technology developer Harman to set a firm foothold. Synergy effects can be made as it additionally is acknowledged in the auto chip market for its technology.

Dong-Jin Shin shine@donga.com