Micron Signs Long-Term Automotive Memory Supply Agreements with Hyundai Mobis and Qualcomm
Harman, Samsung Electronics Subsidiary, Also Participates
US memory semiconductor company Micron has signed supply agreements for automotive semiconductors with companies such as Qualcomm and Hyundai Mobis.
On July 16 (local time), Micron announced that it had entered into a Strategic Customer Agreement (SCA) for the supply of automotive artificial intelligence (AI) semiconductor components with its automotive partners. Participants in the agreement include Hyundai Mobis and Harman, the audio division subsidiary of Samsung Electronics, as well as chip maker Qualcomm, Visteon, Joynext, Denso, and Aisin Seiki (Astemo). These companies are expected to receive long-term supplies of memory and storage devices needed for AI-based platforms such as automotive infotainment systems, advanced driver-assistance systems (ADAS), and connectivity systems.
Chief Executive Officer Sanjay Mehrotra said, "As vehicles become increasingly intelligent, memory and storage are key enablers for the technology experiences that consumers demand," adding, "This SCA will help secure the memory and storage necessary for advanced automotive platforms to deliver richer, safer, and more intelligent experiences."
Hyundai Mobis CEO Kyu Seok Lee stated, "Automakers are accelerating the development of intelligent platforms based on advanced ADAS functions to enhance safety and driver trust," adding, "Through collaboration with Micron, we are helping to build the foundation necessary for future ADAS and software-defined vehicle architectures."
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Meanwhile, Micron announced during the third quarter (March–May) earnings report last month that it had signed a total of 16 SCAs. Unlike conventional annual long-term agreements (LTAs), an SCA predetermines volume and price over a period of three to five years. This approach allows memory companies to better estimate long-term demand in advance, thus alleviating the risk associated with unexpected drops in demand.
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