Samsung Foundry Enters BYD Supply Chain, Targeting China's Automotive Chip Market
N.R. Finch
Samsung Electronics is in talks with BYD and other Chinese automakers over 2nm and 4nm autonomous-driving chip orders — driven by SMIC's advanced-node capacity ceiling, this push could reshape the supply map for China's auto chips.
Who is Samsung talking to, and about what?
Samsung's foundry division is in technical discussions with BYD and several major Chinese automakers over mass-production orders for 2nm and 4nm automotive-grade chips.
This means → the conversation has moved beyond NIO-class EV start-ups to China's largest carmaker by volume.
NIO already uses Samsung's 5nm node for its autonomous-driving chips. Landing a BYD contract would mark a major tier-up in Samsung's China auto-chip client roster.
Why aren't Chinese automakers using SMIC?
SMIC's production capability currently tops out at the 7nm node — a significant gap versus Samsung and TSMC on advanced processes.
Critically, SMIC's limited 7nm capacity is fully absorbed by Huawei and a handful of strategic clients; the rest of its lines run at 14nm and above.
In plain terms = Chinese carmakers aren't shunning domestic foundries by choice. The advanced-node "seats" are already taken — Huawei is sitting in all of them.
Why do self-driving chips demand cutting-edge nodes?
Advanced autonomous-driving chips must process massive data streams in real time inside a vehicle, setting extreme requirements for compute power, energy efficiency, and thermal management. The 4nm or 2nm node is the technical floor.
Because these chips are safety-critical, automakers rank process-node advancement as the top criterion when choosing a foundry partner.
Samsung's 4nm line has reached stable, mature-yield mass production. Its 2nm node uses GAA — gate-all-around, a transistor design where the gate wraps the channel on all four sides for tighter current control — and its production readiness is already validated: Tesla has committed its next-gen AI chip (AI6) to Samsung.
What gives Samsung the edge for these orders?
With SMIC's advanced nodes constrained, Samsung is the most practical alternative to TSMC for Chinese companies.
Samsung's System LSI division has in-house design and production experience with its own automotive chip line, "Exynos Auto." This reflects a capability beyond raw wafer capacity — Samsung understands automotive-grade requirements end to end.
In plain terms = TSMC is capacity-tight and geopolitically sensitive; SMIC lacks both the technology and the available slots. Samsung sits right in the gap — advanced nodes plus automotive pedigree.
After autos, who comes next?
Industry watchers expect Alibaba, Tencent, ByteDance, and Baidu to approach Samsung's foundry for their in-house AI chip production as well.
However, most of these firms are on U.S. semiconductor export-control lists, creating near-term compliance barriers to large-scale orders.
This means → auto chips are Samsung's "front door" into China — the segment with the least compliance friction and the most urgent demand. Once trust is built there, cooperation could extend to AI and high-performance computing chips.
Content is for reference only, not financial advice.