Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Mobis, chipmakers forge ties to localize semiconductors for vehicles
Hyundai Mobis CEO Lee Gyu-suk speaks during the first Auto Semicon Korea event at DoubleTree by Hilton Seoul Pangyo in Seongnam, Gyeonggi Province, Monday. Courtesy of Hyundai Mobis
By Lee Min-hyung
Hyundai Mobis has teamed up with local chipmakers and research institutions to establish the nation’s first private-sector-driven automotive semiconductor value chain, the auto parts maker said Monday.
The company shared its vision during the inaugural Auto Semicon Korea event in Seoul. A group of 23 companies and research bodies joined the event to discuss future business opportunities in the lucrative chip market for automobiles.
The collaboration is the first of its kind in Korea. Hyundai Mobis and key participants — such as Samsung Electronics and SK keyfoundry — shared a common view that local industry players should take immediate steps to localize development for chips used in vehicles, as the industry has so far been driven by overseas firms, particularly in North America and Europe.
The participants pledged to form what they call a self-sustaining value chain and create new business models to improve the status quo and gradually increase their global competitiveness.
Hyundai Mobis, as a global Tier 1 automotive supplier, will play a crucial role in achieving the drive, as the company occupies a strategic position connecting technology and demand between carmakers and semiconductor suppliers.
“We are securing independent semiconductor design capabilities, while pursuing joint development with fabless firms and design houses, and even expanding cooperation with major foundries,” Hyundai Mobis CEO Lee Gyu-suk said during the event.
“Hyundai Mobis actively encourages companies with expertise in home appliance and mobile sectors to enter the mobility area, so we can take the lead in building the domestic ecosystem.”
The latest initiative comes amid the growing strategic importance of in-vehicle chips, as global carmakers go all out to make smarter vehicles in the era of autonomous driving.
According to data from Boston Consulting Group, the global automotive semiconductor market is forecast to grow by more than 9 percent annually through 2030 with the rapid rise of electric vehicles and advanced driver assistance systems (ADAS).
Hyundai Mobis is also expected to gradually increase sales of its key semiconductors for infotainment and connectivity, ADAS and electrification, in line with the auto paradigm shift. For now, the company is mass-producing a total of 16 types of semiconductors it developed in-house through external foundries.