Hyundai Motor Group has disbanded its semiconductor development division, raising questions about the company’s ambitious plans to develop in-house autonomous driving chips by 2029.
The South Korean automaker merged the functions of its Semiconductor Strategy Office into its Advanced Vehicle Platform division and purchasing organization, according to company officials. The restructuring comes just two years after Hyundai elevated its chip strategy team to a division-level unit.
The reorganization signals potential changes in Hyundai’s semiconductor strategy as global automakers grapple with make-or-buy decisions for critical components. The company had been evaluating foundry partners including Samsung Electronics and TSMC for 5-nanometer chip production, with a decision expected in early 2024.
Industry experts suggest Hyundai may reconsider its plans to develop autonomous driving chips internally, given that most major automakers partner with specialized providers like Mobileye, Nvidia, and Qualcomm. The company currently sources all its advanced driver assistance system chips from Mobileye.
The restructuring aligns with Hyundai’s software-defined vehicle strategy, with the semiconductor team now reporting to Song Chang-hyeon, who leads the Advanced Vehicle Platform unit. A company representative said the move aims to strengthen synergies but declined to comment on specific strategy changes.
