Hyundai Mobis has completed in-house design of automotive semiconductors and will begin mass production in the first half of 2025, positioning itself to capitalize on growing demand in the rapidly evolving vehicle technology market.
The South Korean auto parts maker will outsource manufacturing of its chips to Samsung Electronics after finalizing research, development and reliability verification for semiconductors used in core components including electrification, electronics and lighting systems, the company announced Monday.
The initial production will focus on power integration chips that combine electric vehicle control functions and lamp driving semiconductors. This marks Hyundai Mobis’ entry into chip production about five years after acquiring Hyundai Autron’s semiconductor business in 2020.
To bolster its technological capabilities, Hyundai Mobis plans to establish a specialized research center in Silicon Valley by year-end, aiming to develop design technologies for both domestic and international markets while strengthening partnerships with global semiconductor firms.
The company is targeting two key semiconductor segments: power chips to enhance EV range and performance, and system semiconductors for vehicle power, drive, communication and networking functions.
Market research firm IDC projects the global automotive semiconductor market will more than double from $41.2 billion in 2020 to $88.3 billion by 2027, growing at approximately 12% annually as modern vehicles incorporate up to 3,000 semiconductor components each.
