[Edaily Reporter Kong Chi-Yu ] Following the rise of artificial intelligence (AI) data centers, the importance of memory semiconductors is growing in software-defined vehicles (SDVs), such as autonomous cars, prompting even automakers to extend “overtures” to global memory companies. As the capacity of memory installed in vehicles increases significantly to support enhanced in-vehicle functions, competition for dominance in the automotive memory market appears to be heating up.

According to industry sources on the 20th, global memory semiconductor company Micron recently signed Strategic Customer Agreements (SCAs) with Qualcomm, Harman (SamsungElectronics’ automotive subsidiary), Denso, and HyundaiMobis. Micron is expected to supply these companies with memory products used in Advanced Driver Assistance Systems (ADAS), digital cockpits, and infotainment systems. Micron had previously signed long-term memory supply agreements with Ford and General Motors (GM) in the U.S.

The amount of memory installed in finished vehicles is steadily increasing. This is because, as automotive technology becomes more sophisticated, the volume of data that vehicles must process is surging. Demand is growing not only for high-performance DRAM—used to process sensor data from high-resolution cameras, radar, and other sources, as well as AI computations in real time—but also for NAND flash, which is used to store data. According to market research firm IMARC Group, the global automotive memory market is projected to grow approximately 2.5-fold, from $7.5 billion (approximately 12 trillion won) last year to $19.2 billion by 2034.

Since entering the automotive memory market in 2015, SamsungElectronics has also been expanding its market presence with low-power DRAM products such as LPDDR5X and NAND-based storage devices like Universal Flash Storage (UFS). UFS is a type of memory used in automotive infotainment systems and Advanced Driver Assistance Systems (ADAS). SamsungElectronics has become the first in the industry to develop UFS 5.0 memory optimized for on-device AI and will begin mass production by the end of this year. By targeting the automotive market with these next-generation products, the company recorded a 40% share of the global automotive DRAM market last year, surpassing Micron for the first time to claim the top spot in the automotive memory market.

Prices for automotive memory are also rising at an accelerated pace. This is due to the relatively tight supply of automotive memory, as memory manufacturers are prioritizing production capacity for high-bandwidth memory (HBM) for AI data centers and server DRAM. According to TrendForce, contract prices for LPDDR5X in the first quarter of this year rose by approximately 90% compared to the previous quarter. The rate of increase is expected to remain in the 80% range in the second quarter as well. There is a growing trend toward signing long-term supply contracts spanning three to five years to enhance supply chain stability.

An official from the semiconductor industry stated, “As autonomous driving levels advance, the capacity of automotive memory semiconductors installed in a single vehicle could surpass that of AI servers,” adding, “In preparation for market expansion, the industry is also stepping up its competition for market leadership.”