Infineon Technologies AG (hereinafter referred to as Infineon), the world's leading company in automotive semiconductors, will supply some of the power semiconductors for electric and hybrid vehicles to Hyundai Motor Company and Kia Motors until 2030.

Hyundai Motor Company and Kia Motors announced that they signed a strategic collaboration agreement for power semiconductors at the Infineon headquarters in Munich, Germany on the 17th, with the attendance of executives from both companies, including Kim Heung-soo, Vice President of Hyundai Motor Group’s Global Strategy Office (GSO), and Peter Schiefer, President of Infineon’s Automotive Business Unit.

Through this agreement, Hyundai Motor Company and Kia Motors plan to collaborate on technology development with Infineon with the goal of improving the power performance of electric and hybrid models scheduled to be released in the future.

In addition, Hyundai Motor Company and Kia Motors have agreed to receive some of the power semiconductors needed for the production of electrified vehicles, such as electric and hybrid vehicles, from Infineon by 2030.

Infineon, headquartered in Germany, is the world's leading supplier of automotive semiconductors. In addition to automotive power semiconductors, MCUs, and sensor semiconductors, the company is also making a mark in the industrial power semiconductor business.

Hyundai Motor Company and Kia Motors expect that there will be high synergy effects from their collaboration with Infineon in all areas, including technological competitiveness, mass production verification history, and production scale.

Hyundai Motor Company and Kia Motors began receiving sensor semiconductors from Infineon in the early 2000s and have been supplying power semiconductors since the mid-2000s. They also operated a power performance research center with Infineon from 2007 to 2020.

Power semiconductors are key components of eco-friendly vehicles that convert, control, and distribute electricity, thereby increasing battery life and reducing power consumption. Because the technological entry barriers are high and custom designs are required for each vehicle model, suppliers and production scale are limited.

Hyundai Motor Company and Kia Motors signed this strategic collaboration agreement to resolve supply uncertainty due to external variables and to secure a stable supply of power semiconductors amid increasing demand for power semiconductors due to the recent expansion of the global electrification market.

At the signing ceremony, Vice President Kim Heung-soo of Hyundai Motor Group’s Global Strategy Office (GSO) emphasized, “Infineon is a strategic partner with stable production capabilities and differentiated technological prowess in the power semiconductor market.” He continued, “Through cooperation between our two companies, we will resolve mid- to long-term supply and demand risks and secure leadership in the global electric vehicle market based on competitive products that apply new technologies.”

“We are proud to have established a long-term collaboration with Hyundai Motor Company and Kia Motors as a trusted partner,” said Peter Schiffer, President and CEO of Infineon’s Automotive Business Unit. “Infineon will do its best to develop high-quality power semiconductors tailored to Hyundai Motor Company and Kia’s system specifications and supply them in a timely manner.”

Hyundai Motor Company and Kia Motors plan to expand strategic collaboration with semiconductor companies with the world's best technologies to stabilize the supply and demand of core semiconductors and strengthen vehicle competitiveness in the future.