The Korean auto parts giant Hyundai Mobis is spearheading a major initiative to establish the country’s first domestic supply chain for automotive semiconductors. The company has partnered with other Korean chipmakers and research groups to reduce its reliance on foreign firms and capture a larger share of the booming market for car chips.
The new partnership was announced at a recent event in Seoul, where 23 companies, including heavyweights such as Samsung Electronics, gathered to discuss the plan. The group shares a common goal: to start developing and producing car chips at home. For too long, it is said, the industry has been dominated by companies from North America and Europe.
By working together, they aim to establish a self-sustaining “value chain” in Korea, spanning from chip design to manufacturing. Hyundai Mobis will play a key role in this effort. As a major global supplier to automakers, it’s in a perfect position to connect car companies that need the chips with local firms that can manufacture them.
“We are securing independent semiconductor design capabilities,” said Hyundai Mobis CEO Lee Gyu-suk, adding that the company is actively encouraging firms with experience in other areas, like mobile phones, to get into the car chip business.
This push comes at a critical time. As cars get smarter and more connected, the demand for advanced chips is exploding. The global market for automotive semiconductors is projected to grow by more than 9% annually through 2030. Hyundai Mobis and its new partners aim to ensure that Korea secures a share of the action.
