Hyundai Motor's Big Dream of Semiconductor In-House Production: "We Will Achieve It Despite Significant Investment and Time"

Hyundai Motor and Hyundai Mobis Expected to Develop Vehicle Semiconductors Independently
Growing Need to Reduce Dependence on Semiconductor Manufacturers and Develop Own Chips

[Asia Economy Reporter Changhwan Lee] The President of Hyundai Motor Company's North America Headquarters has expressed a strong commitment to developing automotive semiconductors in-house. Although Hyundai Motor Group officially announced the in-house development of automotive semiconductors earlier this year through Hyundai Mobis, there is a possibility of expanding this initiative at the group level in the future.

This is interpreted as preparation for the explosive increase in demand for automotive semiconductors, as the semiconductor supply shortage is likely to continue into next year and vehicle electrification is accelerating.

Jose Munoz, Chief Operating Officer (COO) of Hyundai Motor Company and President of the North America Region, emphasized the need to develop semiconductor chips independently to reduce reliance on semiconductor manufacturers during a meeting with local reporters on the 13th (local time).

He said that although the worst phase of the semiconductor shortage has passed, August and September were the "most difficult months."

Munoz stated, "Semiconductor chip manufacturer Intel is investing heavily to increase production, and the semiconductor industry is responding very quickly," adding, "Hyundai also wants to develop our own chips within the group."

Jose Munoz, Chief Operating Officer (COO) of Hyundai Motor Company and President of the North America Regional Headquarters

He further explained that semiconductor development "requires significant investment and time, but this is an area we are focusing on," and that Hyundai Mobis, Hyundai Motor's automotive parts affiliate, will play an important role in the in-house semiconductor development plan.

Hyundai Mobis announced at a strategic conference held on March 31 that it is pursuing semiconductor internalization in the mid to long term. To this end, Hyundai Mobis acquired the semiconductor division from Hyundai Autron, a group affiliate, for approximately 133.2 billion KRW at the end of last year.

Currently, Hyundai Mobis is developing automotive semiconductors independently in collaboration with major partners. It is understood that some semiconductor components have been successfully developed in-house and are being applied to vehicles. Hyundai Mobis directly designs and develops the semiconductors, while manufacturers and partners handle contract manufacturing.

Hyundai Motor Group's move to develop automotive semiconductors in-house is due to the high likelihood that the semiconductor supply shortage will continue into next year. The rapid electrification of vehicles such as electric cars, hydrogen cars, and autonomous vehicles is also a cause for the expected surge in demand for automotive semiconductors.

Internal combustion engine vehicles contain about 200 to 300 semiconductors, but autonomous vehicles are expected to have more than 2,000 semiconductors. The more automotive technology advances, the higher the dependence of car manufacturers on semiconductors becomes.

Accordingly, there is speculation that Hyundai Motor may pursue mergers and acquisitions (M&A) of semiconductor companies in the long term. It is expected that Hyundai could actively enter the semiconductor industry by acquiring fabless semiconductor design companies, which are less burdensome than direct manufacturing.

An industry insider said, "While the possibility of Hyundai acquiring an automotive semiconductor company in the short term is low, it is quite possible that M&A will be pursued in the mid to long term to secure a stable supply chain."

This content was produced with the assistance of AI translation services.