Hyundai Mobis seeks 2-track growth in auto chips, robotics

Hyundai Mobis CEO Lee Gyu-suk speaks during the firm’s CEO Investor Day in Seoul, Wednesday. Courtesy of Hyundai Mobis

Hyundai Mobis will push for a two-track growth strategy in automotive semiconductors and robotics to preemptively seize opportunities in an era of electrification and robot-driven smart factories, the auto parts maker said during its CEO Investor Day Wednesday.

Hyundai Mobis CEO Lee Gyu-suk presented the company's long-term vision to reduce its reliance on traditional auto parts sales and seek new growth engines in chips used for electric vehicles (EVs) and smart robot components.

In semiconductors, the company is pursuing a two-track strategy in system semiconductors and power semiconductors. Hyundai Mobis is developing system-on-chips (an electronic integrated circuit) for in-vehicle communication and battery monitoring integrated circuits. It is also accelerating in-house mass production of power semiconductors, which are considered critical components for EV drive systems.

The company has so far developed 16 types of chips and plans to produce 20 million units this year by investing more in semiconductor research. Hyundai Mobis recently won the highest ISO 26262 safety rating and remains on track to develop 11 next-generation semiconductors.

In robotics, the firm also shared a plan for its entry into the actuator market by leveraging its expertise in vehicle steering systems. Actuators, which control robot movement, share core components with electronic steering systems, and they account for more than 60 percent of humanoid robot production costs. Starting with actuators, the company plans to expand its inroads into sensors and controllers.

Lee also said the firm will continue to restructure its business portfolio with a focus on profitability.

The company aims to achieve over 8 percent annual sales growth and an operating profit margin of 5 to 6 percent by 2027 through product specialization and resource reallocation toward future core technologies.

The company also plans to strengthen its global presence by increasing the share of its global customers in core parts sales to 40 percent by 2033.

To that end, Hyundai Mobis said it will continue to deepen partnerships in North America and Europe, while at the same time expanding orders in rapidly growing markets such as China and India, through localized product strategies and supply chain reinforcement.

“We will secure future growth momentum by redirecting our strategic focus on research and investment in next-generation core components,” Lee told investors during the event.