[Featured Stock] Telechips Highlights Independent Development of Automotive MCU... Expectations Rise for Hyundai Design and Samsung Production Collaboration

[Asia Economy Reporter Hyungsoo Park] Telechips is showing strong performance. The news that President Moon Jae-in urged cooperation between Samsung and Hyundai Motor in vehicle semiconductors seems to be influencing the stock price. Telechips, a leading domestic vehicle system semiconductor specialist company, possesses core technology to produce semiconductors applicable to advanced driver assistance systems (ADAS).

As of 9:27 AM on the 28th, Telechips is trading at 18,950 KRW, up 8.93% from the previous day.

The day before, President Moon emphasized the importance of corporate cooperation for future growth industries during a Blue House luncheon meeting with heads of six major companies.

During a private luncheon conversation, Blue House spokesperson Park Kyung-mi revealed that President Moon said, "It would be good if Samsung Electronics and Hyundai Motor closely cooperate in vehicle semiconductors." Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Chairman Chung Eui-sun did not respond specifically.

President Moon addressed Hyundai Motor Chairman Chung Eui-sun, saying, "Domestic car sales in Europe and the United States have greatly increased, but to compete with foreign companies, we must compete through technology and service." This is interpreted as a call to secure a global market lead in the post-COVID-19 era through cooperation among domestic companies amid a worldwide shortage of vehicle semiconductors.

Industry insiders expect cooperation where Hyundai Motor designs system semiconductors and Samsung Electronics undertakes contract manufacturing. Some also mention a method where Hyundai Motor and Samsung Electronics jointly develop vehicle system semiconductors and produce them through Samsung’s foundry facilities.

Hyundai Motor and Samsung Electronics are both interested in automotive semiconductors. Hyundai Motor has started semiconductor internalization efforts through Hyundai Mobis and Hyundai AutoEver, while Samsung Electronics recently unveiled the industry’s first automotive 5th generation mobile communication (5G) modem chip and an infotainment processor to be used in Volkswagen electric vehicles. Hyundai Motor and Samsung Electronics are expanding the scope of their cooperation. Expectations are growing that not only MCUs mediated by domestic fabless companies but also advanced 10nm automotive application processors (AP) will be developed.

Telechips is pushing for mass production of microcontroller units (MCU), a vehicle semiconductor. It is known to be conducting product tests with major domestic and international clients aiming for mass production next year. The MCU will be produced based on Samsung Electronics’ 12-inch wafers. It is expected to help address the vehicle semiconductor shortage. Telechips is exploring MCU supply plans with domestic and overseas clients. Currently, tests are underway with clients using its self-developed MCU engineer samples (ES).

In the third quarter of 2021, Telechips recorded 91.6 billion KRW in automotive semiconductor sales, a 32.9% increase compared to the same period last year. Operating profit rose 119.7% year-on-year to 1.66 billion KRW, and net profit increased 125.3% year-on-year to 1.92 billion KRW.

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