Samsung Electronics in Talks with BYD for 4nm and 2nm Automotive Chip Foundry Deal

Samsung Electronics' foundry division is in talks with BYD regarding the production of advanced driver-assistance system (ADAS) chips using 4-nanometer and 2-nanometer process technologies. If the partnership materializes, BYD would become the second automaker—after Tesla—to collaborate with Samsung in this field. On May 28, 2024, BYD launched China’s first 4-nanometer intelligent driving chip, the “Xuanji A3,” which supports Level 3 and Level 4 autonomous driving. The combined computing power of three such chips exceeds 2,100 TOPS, and the chip has already entered mass production. In 2025, BYD achieved total annual sales of 4.602 million vehicles, an increase of 7.73% year-over-year. Its battery electric vehicle (BEV) sales reached 2.257 million units, up 27.86% year-over-year, surpassing Tesla to become the world’s largest electric vehicle manufacturer. Samsung’s foundry business has recently suffered revenue losses due to underutilized capacity, with overall utilization hovering around 50% in the second half of 2025. Utilization is expected to rise to 60% in the first half of 2026 but will still remain below the breakeven level. Securing orders from Chinese automakers is therefore critical for its foundry operations. In addition to BYD, Samsung is also engaging with other Chinese EV makers. NIO’s ADAS chips used in multiple vehicle models are already manufactured using Samsung’s 5-nanometer process, and Samsung aims to expand such collaborations to more advanced nodes.