Hyundai Motor Company and Kia have entered into a strategic collaboration with Germany’s Infineon Technologies, the world’s leading automotive semiconductor company, following the likes of Samsung Electronics and Intel.
On Oct. 17 (local time) at Infineon’s headquarters in Munich, the deal was signed in the presence of several representatives from both companies, including Hyundai Motor Group’s Global Strategy Office Executive Vice President Kim Heung-Soo and President of Infineon’s Automotive Division Peter Schiefer. The details were revealed on Oct. 18.
Through this agreement, Hyundai and Kia aim to advance the power performance of their upcoming electric and hybrid models, partnering with Infineon on technological developments.
By 2030 they plan to procure a portion of the power semiconductors needed for the production of electrified vehicles such as electric cars and hybrids from Infineon. Hyundai and Kia are currently selling around 600,000 electric cars annually but have ambitious plans to increase this sixfold to 3.6 million units (2 million from Hyundai and 1.6 million from Kia) by 2030. Given the global explosive growth anticipated in electric vehicle production, the companies have taken a proactive approach to strengthen their relationship with Infineon.
Headquartered in Germany, Infineon holds the top spot in global automotive semiconductor market share. Hyundai and Kia began sourcing sensor semiconductors from Infineon in the early 2000s, expanding to power semiconductors by the mid-2000s. Moreover, from 2007 to 2020, the two worked with Infineon to operate a power performance research institute.
While Hyundai Motor Group has also sourced power semiconductors from Japan’s Renesas, its dependence on Infineon for supply remains significant. Since 2021, it has been pushing for the internalization of power semiconductors through Hyundai Mobis. However, it recognizes the need to further strengthen its existing supply chain to effectively respond to the rapidly evolving electric vehicle market.