Hyundai Mobis plans to supply automotive semiconductors developed in South Korea to Hyundai Motor and Kia vehicles from 2029, as the country seeks to reduce its reliance on imported chips, according to Korea JoongAng Daily.
More than 95 per cent of the automotive chips used in South Korea are currently imported. Hyundai Mobis is working with domestic semiconductor companies, including Samsung Electronics and SK keyfoundry, to develop chips for use in vehicles manufactured by the two automakers.
“Hyundai and Kia will begin using the chips we have developed in vehicle testing from next year,” Hyundai Mobis president Lee Gyu-suk said at the Auto Semicon Korea forum in Pangyo, Gyeonggi, according to Korea JoongAng Daily. He also said the company was developing the chips with potential sales to overseas automakers in mind.
The forum, launched in 2025, brought together 53 companies and institutions to support domestic automotive semiconductor development. Participants took up around 13 chip development projects last year, nine of which have been confirmed for mass production in Hyundai and Kia vehicles.
Hyundai Mobis Expands Automotive Semiconductor Development
Hyundai Mobis acquired Hyundai Autron’s semiconductor business in 2020 and has since expanded its research and development activities across power semiconductors and system semiconductors.
The push to develop domestic automotive chips follows the global semiconductor shortage triggered by the Covid-19 pandemic, which forced Hyundai Motor factories to halt production.
At the forum, South Korea’s Industry Minister Kim Jung-kwan signed a memorandum of understanding with Hyundai Mobis to establish a domestic research laboratory for power semiconductors, which are used in electric vehicles.
The South Korean government is also developing an automotive semiconductor support centre in Asan, South Chungcheong, to verify and evaluate chip reliability. The facility is scheduled for completion in 2027.
Hyundai Mobis said it would continue working with domestic semiconductor companies to develop chips for the country's automotive industry, while also pursuing opportunities to supply overseas manufacturers.