Fed up with semiconductor shortage threat, Hyundai-Kia accelerates plans to produce own chips

Jerrica · Aug 10, 2022 03:13 PM

Fed up with semiconductor shortage threat, Hyundai-Kia accelerates plans to produce own chips 01

Hyundai Motor Group is accelerating plans to develop its own automotive semiconductors chips. The chips will be spearheaded by the group’s parts affiliate, Hyundai Mobis.

The move is part of Hyundai and Kia's strategy to cope with the semiconductor supply shortage risks as the need for chips continues to grow amidst the transition to electric vehicles (EV) and autonomous vehicles.

Fed up with semiconductor shortage threat, Hyundai-Kia accelerates plans to produce own chips 02

Semiconductor chips have become a key part of determining the competitiveness of future cars because EVs and autonomous vehicles require more than 500 to 1,000 semiconductors. This is three times more than the amount used in internal combustion engine (ICE) cars.

According to a report by Korea Times, Hyundai Mobis intends to focus on power semiconductors and is in the process of developing and producing them. Other than that, the company also plans to expand into system semiconductors.

Also read: Perodua: Sufficient semiconductor supply till end-2022, on track to achieve 247,800 units target

Fed up with semiconductor shortage threat, Hyundai-Kia accelerates plans to produce own chips 01

Power semiconductors are one of the key components that can extend the driving range of EVs. Meanwhile, high-performance semiconductors are a key part of autonomous driving and artificial intelligence (AI).

System semiconductors, however, must be produced directly or consigned through a foundry. Hyundai Mobis will most likely opt for consignment production because it takes a lot of money and time to build a semiconductor factory.

Fed up with semiconductor shortage threat, Hyundai-Kia accelerates plans to produce own chips 02

Currently, six companies, including Renesas of Japan, NXP of the Netherlands, Infineon of Germany, Texas Instruments and Microchip of the USA, and ST Microelectronics of Switzerland, produce and supply 90 percent of the world’s automotive system semiconductors.

Korean companies, meanwhile, only account for 2 percent of the market.

Also read: Think the Perodua Myvi is a simple car? Here's how much it relies on microchips

Jerrica

Writer

There isn’t a time in memory that doesn’t involve staring at cars. After discovering the excitement of watching Schumacher vs Hakkinen, Formula 1 became a major part of life. The love for cars and F1 ultimately led to a job with CAR Magazine. The untimely death of the magazine meant a hiatus from cars at lifestyle women’s magazine Marie Claire before another opportunity came knocking again.

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