Hyundai hires ex-Samsung execs

By Kim Yoo-chul

Hyundai Motor Group has recruited former Samsung Electronics executives in a move to sprint ahead in the newly-created market triggered by the convergence of information technology and automobiles.

Of late, leading automakers are teaming up with technology firms such as Samsung, Qualcomm and SK Hynix because the future of cars is all about connections that require high-quality memory chip technologies.

Hyundai Motor said that it recently hired Hwang Seung-ho, a former Samsung senior vice president, to head its telematics business.

Hwang will be tasked with developing automotive systems such as telematics to be used in Hyundai Motor’s Blue Link and some of Kia’s upcoming premium connected vehicles, according to Hyundai officials.

“Hwang will handle developing next-generation connected vehicles with advanced technology solutions,” said a Hyundai official by telephone.

From 2006 to last year, Hwang worked for Samsung Electronics. He was a senior executive at Samsung’s logic chip business and handled the chip giant’s modem and connectivity unit, Samsung said.

Hwang also worked at Silicon Image, a telecommunication solutions developer based in Silicon Valley, Calif., for a decade since 1996, said Hyundai officials.

Before Hwang, Hyundai hired Kim Jae-beom, a former executive at Samsung Electronics’ semiconductor planning division.

Hyundai Autron, the company’s semiconductor affiliate, named Kim as a senior executive. Hyundai Autron declined to confirm this information.

“Hyundai Motor Chairman Chung Mong-koo is interested in expanding Hyundai’s various automotive solution-related businesses by hiring experienced Samsung executives,” said a Hyundai official. Samsung declined to comment on this.

Samsung works closely with Hyundai to grow its automotive semiconductor business.

It is also trying to sell its vehicle-based entertainment and navigation applications with embedded multimedia cards and embedded multi-chip packages to major carmakers, although the chip supplier is still in the process of improving the durability of those solutions.

While Samsung is the leading global supplier of memory chips, it is attempting to cut its heavy reliance on the conventional chip business, which is cyclical and sensitive to market situations, by gradually shifting its focus toward logic chips.

“Automotive chips require high product quality due to passenger safety concerns. Samsung isn’t aggressively pursuing logic chips for vehicles at the moment. Rather, the chip giant is focusing initially on boosting entertainment systems and automotive navigation solutions for which memory chips are also crucial parts. For Hyundai, it’s a good scenario to use Samsung’s experience and patents by scouting their skilled executives,” said a Samsung source who declined to be named.

The strengthening alliance between the two conglomerates is also expected to help other Samsung Group technology affiliates including Samsung SDI, the group’s battery-making unit, find new business opportunities because Hyundai Motor is trying to diversify its car battery sourcing channels beyond LG Chem, said market analysts.

During January’s Consumer Electronics Show in Las Vegas, Samsung announced it will supply its low-end automotive solutions to Germany-based BMW.

The Korean technology giant will also provide in-car infotainment systems to the India-based Tata Motors.

Tata Motors plans to launch passenger vehicles next year equipped with Samsung’s Drive Link application on MirrorLink technology that will help drivers navigate, answer calls and access the Internet and music.