Samsung to start making Hyundai car chips this half of the year

Many major automakers have come to the conclusion that vertical integration of business in the conditions of tough competition allows to reduce costs, therefore some market participants are trying to establish the production of their own semiconductor components. Hyundai Mobis is ready to offer them not only to its related South Korean auto concern, but also to everyone who wants them, although the actual production of chips will be handled by Samsung.

Image source: Hyundai Mobis

Hyundai Mobis announced early last week that its car components had received the necessary safety certifications, which will allow it to start mass production in the first half of this year. By the end of the year, Hyundai Mobis will open its own research center in California, which will offer its own chips to all automakers. The direct production of Hyundai Mobis chips will be handled by a contract division of Samsung Electronics.

This year, Hyundai Mobis will begin offering customers power electronics, but in the future, the product range will also be expanded to include control components for various on-board systems. On average, a modern car has up to 3,000 semiconductor components; by 2027, the automotive electronics market turnover will more than double to $88 billion per year compared to 2020, as IDC analysts expect. Hyundai Mobis will also offer its customers components for electric vehicle power systems. By 2028, the company hopes to release control electronics for next-generation traction batteries, as well as master the production of power electronics based on silicon carbide. The research center in California will serve as a point of attraction for specialists with experience in the industry, among other things.