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South Korea’s SK Hynix Inc. is finalizing negotiations to supply its automotive DRAM chips to German multinational tech giant Robert Bosch GmbH.
The South Korean chipmaker is pursuing a 10-year supply deal. The potential contract's value was unknown.
Bosch officials visited SK Hynix’s offices in South Korea to discuss the deal in late 2020.
The global automotive DRAM market is forecast to grow rapidly due to the takeoff of self-driving cars.
The DRAM capacity for an autonomous vehicle is forecast to increase from 2GB in 2020 to 8GB by 2024.
Analysts say that the automotive DRAM segment will grow from a mere 2 percent of the global DRAM market grow to 4 percent over the next five years.
The talks between SK Hynix and Bosch also come amid growing signs that the global DRAM market is entering a boom cycle with chip prices on an ascending trendline and major chipmakers spending generously to ramp up facilities.
