Hyundai Mobis is embarking on the development of automotive semiconductors. The company plans to strengthen its collaboration with automakers, parts suppliers, semiconductor firms, and research institutions to enhance domestic semiconductor production. The goal is to begin mass production by 2029.
On October 21, Hyundai Mobis announced its plans at the 'Second Auto Semicon Korea Forum' held in Seongnam, Gyeonggi Province. Launched in September 2025, the Auto Semicon Korea (ASK) platform aims to connect the automotive and semiconductor industries to bolster the competitiveness and supply chain of domestic automotive semiconductors.
Over the past year, ASK has identified 19 collaborative projects in the system semiconductor sector, with 13 now entering the development phase. Nine vehicle models have been selected for application, following discussions with Hyundai Motor and Kia regarding production models. The company has also initiated joint reviews to enhance development capabilities, quality, and mass production competitiveness in the power semiconductor sector.
Lee Kyu-seok, CEO of Hyundai Mobis, stated, "Last year, the localization rate was below 5%, which is quite low. I believe that ASK will serve as a more practical collaboration platform that can yield tangible results rather than just being an event." He anticipates that the first automotive semiconductors will begin mass production in 2029.
The previous forum highlighted the issue of insufficient testing facilities, which has led to improvements. The 'Cheonan Automotive Semiconductor Support Center,' overseen by the Korea Automotive Technology Institute, is currently under construction and aims to be completed by June 2027. This center will enable companies to conduct reliability verification and evaluation of automotive semiconductors, reducing reliance on overseas evaluation agencies that previously incurred significant time and costs.
At the second ASK, a collaborative framework for research and development (R&D) of power semiconductors was established. Power semiconductors are essential components that convert and control battery power in electric vehicles. Hyundai Mobis, SK Ki Foundry, and the government are working to create conditions for domestic fabless companies to produce samples using R&D fabs designed for chips.
Lee remarked, "There are currently very few companies operating in the power semiconductor sector domestically, and there is a significant lack of domestic design technology. I believe that creating a fab for R&D in Korea is the first step, and the results of our proposals to the government are now bearing fruit."
Regarding the challenges of mass production of automotive semiconductors, he noted, "I expect that interest in domestic fabs for automotive semiconductors will grow in the future," while also stating, "We plan to prioritize the use of domestic fabs but will consider supplementing with overseas fabs when necessary." In the early 2020s, the domestic automotive industry faced production disruptions due to a shortage of automotive semiconductor supplies, leading to temporary factory shutdowns.
Meanwhile, Hyundai Mobis has been expanding its R&D portfolio since acquiring the semiconductor business from Hyundai Autron in 2020. The company is currently mass-producing 16 types of self-developed system semiconductors through external foundries at an annual scale of 20 million units.
* This article has been translated by AI.
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