Hyundai Mobis President Lee Gyuseok: "Localizing Automotive Semiconductors... Targeting Mass Production in 2029"

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Hyundai Mobis is moving to accelerate the localization of automotive semiconductor production in collaboration with domestic semiconductor companies. Aiming for the first mass production as early as 2029, it is working to build a domestic supply chain focused on system semiconductors and power semiconductors.

Lee Gyuseok, president of Hyundai Mobis, said at a media briefing held on the 21st at DoubleTree by Hilton Seoul Pangyo in Seongnam, Gyeonggi Province, during the second Automotive Semiconductor Forum, “The conditions for collaboration in Korea’s system semiconductor sector are in place. If we develop effective collaboration models between demand-side companies and semiconductor makers, we can secure the necessary supply base in a short time. We will play an active role in building Korea’s automotive semiconductor ecosystem.”

Lee Gyuseok, CEO of Hyundai Mobis, delivers welcoming remarks at the 2nd Hyundai Mobis Automotive Semiconductor Forum, "Auto Semicon Korea," on the 21st. Photo by Lee Seungjin, reporter.

Since holding its first forum in September last year, Hyundai Mobis has identified 19 system semiconductor collaboration projects with domestic semiconductor companies. Development has begun on 13 types of semiconductors, and, following consultations with Hyundai Motor and Kia, target vehicle models have been selected for nine types. The forum, which drew 27 companies and institutions last year, has expanded its scope of collaboration this year to include software (SW), intellectual property (IP), testing and evaluation, and functional safety, growing into a platform involving 53 companies and institutions.

“Last year, we focused on identifying projects to adapt semiconductors used in other industries, such as mobile devices and home appliances, for automotive use. This year, we are moving on to the stage of specifying actual development, vehicle applications, and commercialization potential,” Lee said.

Mass production is expected to take considerable time. Lee Hee-hyun, an executive vice president at Hyundai Mobis, said semiconductor development takes two to three years, followed by an additional one and a half to two and a half years for vehicle-specific validation. Lee said the overall process takes about four to five years when development and vehicle application procedures are taken into account, adding, “We expect the earliest mass production to be around 2029.”

Semiconductors are also expected to be used in future autonomous vehicles developed by Hyundai Motor Group. “The semiconductor that will be commercialized first is not a high-performance one, so it will not be used in Hyundai Motor Group’s first autonomous vehicle, but it is expected to be used in future autonomous vehicles,” Lee said.

Lee stressed that Korea’s automotive semiconductor industry should be approached separately in terms of system semiconductors and power semiconductors. Domestic companies with semiconductor technologies for mobile devices and home appliances are already active in the system semiconductor sector, where collaboration can accelerate localization. However, the power semiconductor sector lacks design expertise and an established base of related companies, requiring additional investment, he said.

Hyundai Mobis plans to leverage its strengths as both a demand-side company and a semiconductor design and development player. It will communicate automakers’ mid- to long-term technology needs and required semiconductor specifications to domestic companies, then validate the products they develop by integrating them into control units and actual vehicles. The company also plans to expand the scope of joint development to include communication system-on-chips (SoCs), in response to the shift toward software-defined vehicles (SDVs).

Lee said the company’s top priority is to make use of domestic production capacity. “The global semiconductor shortage from 2021 to 2023 made us acutely aware of the need for domestic design and supply capabilities,” he said. “In areas where domestic foundries can meet demand, we should prioritize domestic production and rely on overseas companies only to fill gaps. This is the right approach in the mid to long term.”

The contribution of these projects to revenue is expected to be limited in the early stages. “Semiconductors have low unit prices, so it is difficult to expect a meaningful contribution to revenue right away,” Lee said. “However, if we do not invest now, Hyundai Mobis and Hyundai Motor Group could face significant difficulties in their businesses in the future. That is why we are taking a long-term approach.”

This content was produced with the assistance of AI translation services.