Hyundai Motor Group has turned inwardly for a solution to chip supply disruption as a solid chip value chain is essential for competiveness in future mobility that largely relies on electrification and would likely have strong national backing to reinforce chip and automaking supremacy.

It plans to make Hyundai Mobis central in localizing chip parts.

Hyundai Mobis acquired the semiconductor business from family unit Hyundai Autron in December last year. It then formed a new chip designing team under the research and development division for own designing and development early this year.

The first targets for localization are power management integrated circuits (PMICs) and microcontroller units (MCUs). In the longer run, it will seek to localize advanced driver assistance systems (ADAS) for autonomous driving and system on chips for infotainment system.

Chipmakers and other domestic industries are welcoming the partnership between Hyundai Motor Group and foundries as they see it as an opportunity to have stable supply chain for automotive semiconductors at home.

Sales of Korean auto chips stopped at $940 million in 2019, compared with $12.97 billion U.S. chips, $9.26 billion in Japanese chips and $7.18 billion in German chips, according to data released by the Korea International Trade Association

Currently, less than 5 percent of chips going into vehicles are supplied from home while the bulk is imported mostly from Netherlands’ NXP Semiconductors, Japan-based Renesas Electronics, Infineon Technologies of Germany and U.S.-based Texas Instruments.

Chip role will expand in line with proliferation of EVs and autonomous vehicles.

Latest cars are equipped with 200-300 chips for now, but the number would surge to 2,000 by 2030.

The market could instantly gain traction if the world’s two top memory makers Samsung Electronics and SK hynix back the localization campaign.

Samsung Electronics is said to be reviewing cooperation with Hyundai Motor for development of autonomous car chips. SK hynix also has begun to develop automotive semiconductors by forming a new team.

By: DocMemory
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