Hyundai Mobis to supply homegrown chips for Hyundai, Kia cars by 2029

PANGYO, Gyeonggi – Hyundai Motor and Kia vehicles will be equipped with Korean-made automotive chips developed by Hyundai Mobis starting in 2029. 

With Korea currently relying on imports for more than 95 percent of its automotive chips, Hyundai Mobis is co-developing the chips with domestic semiconductor companies, including Samsung Electronics and SK keyfoundry.

“Starting next year, the chips we have developed will be deployed from the very earliest stages of vehicle testing for Hyundai and Kia,” Hyundai Mobis President Lee Gyu-suk said on Wednesday at Auto Semicon Korea, a forum held in Pangyo, Gyeonggi, for the second year.

“Down the line, we are developing them with sales to overseas automakers in mind,” he added.

The forum, launched last year, brought together 53 companies and institutions to collaborate on developing automotive chips domestically, including Samsung Electronics, SK keyfoundry, Global Technology, ABOV Semiconductor, LX Semicon and Dongwoon Anatech.

Participants in last year’s forum took on about 13 automotive chip projects, nine of which have been confirmed for mass production Hyundai and Kia vehicles.

Since acquiring Hyundai Autron’s semiconductor business in 2020, Hyundai Mobis has expanded its research and development portfolio around two pillars: power semiconductors and system semiconductors.

The urgency dates back to the global chip shortage triggered by the Covid-19 pandemic, when Hyundai Motor’s factories were forced to halt production, leaving thousands of workers idle at home.

Industry Minister Kim Jung-kwan also attended the forum and signed a memorandum of understanding with Hyundai Mobis to establish a research lab in Korea for power semiconductors, a key component in electric vehicles.

The government is building an automotive semiconductor support center in Asan, South Chungcheong, to help verify and evaluate chip reliability. The center is scheduled for completion in 2027.

“We will work actively to build a domestic semiconductor ecosystem robust enough to supply the chips essential to Korea’s auto industry and to play a vital role in its growth,” Lee said.

BY SARAH CHEA   [[email protected]]