The government and private sector are embarking on an emergency commercialization of automotive semiconductor components and modules, identifying around 10 items that require performance evaluation and providing priority support with a budget of 40 billion won.

The Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) held the 2nd meeting of the 'Future Automobile-Semiconductor Solidarity and Cooperation Council' on the 7th to review the domestic automotive semiconductor supply and demand trends and the progress of the government's short-term support, and to discuss specific solidarity and cooperation plans between automobile and semiconductor companies.

In this meeting, it was decided to identify about 10 items that domestic companies wish to have performance evaluated with demand companies (automobile and parts manufacturers) after completing development.

The items discovered are: △Vehicle storage △Power semiconductors (IGBTs) for positive temperature coefficient (PTC) heaters for electric vehicles △BMS current sensing elements for fire detection △48V electronic relay elements (E-PRA) △Driving video recorder (DVRS) semiconductors △Digital side mirror (DSM) semiconductors △Surround view monitoring (SVM) semiconductors △LiDAR light source semiconductors △Touch haptic driver ICs △Air conditioning (air conditioner/heater) controllers △APs for AI computing modules △Semiconductors for high-speed Ethernet △Smartphone wireless charging semiconductors △3-phase motor driver ICs. Although they are not the core cause of the current supply and demand imbalance, they are items that require self-sufficiency to strengthen the domestic automotive semiconductor industry and can be commercialized in a short period of time.
/> For the items that are finally selected after additional demand surveys, business announcements (scheduled for April-May), and evaluations by the selection evaluation committee, priority support will be provided through the Small and Medium Business Mass Production Performance Evaluation Support Project, for which 40 billion won has been allocated in the 2021 budget.

In addition, to discover a cooperation model that can enable automobile and semiconductor companies to link and collaborate, we discovered and discussed cooperation models in a bottom-up and top-down manner.

As for the bottom-up cooperation model, we are currently discussing mid- to long-term application plans for areas where domestic companies already have capabilities, such as APs (Application Processors) for infotainment and image sensors, and we are also exploring areas where there is demand for development and internalization by automakers, such as next-generation power semiconductors.

As a top-down collaboration model, the advisory body (Korea Automotive Research Institute) is currently exploring collaboration models and items that align with the future direction of technology development, and will further refine these models through consultations with demand and supply companies.

In addition, to promote self-sufficiency in automotive semiconductors and accelerate cooperation between companies, the government plans to begin establishing a public-private joint 'mid- to long-term automotive semiconductor technology development roadmap' by April.

Kang Kyung-sung, director of the Industrial Policy Bureau at the Ministry of Trade, Industry and Energy, said, “We are doing our best to minimize damage to domestic companies due to disruptions in the supply and demand of automotive semiconductors, and through this council, solidarity and cooperation items between the automotive and semiconductor industries are being specified.” He added, “We will do our best to promote industrial policies to strengthen the capabilities of the domestic automotive semiconductor industry, such as supporting domestic automotive semiconductor technology development, building infrastructure, supporting prototype production, and strengthening investment support.”

Meanwhile, due to the global semiconductor supply disruption, most global automakers, including Volkswagen and Toyota, are experiencing production disruptions, and Renesas, the world's third-largest automotive semiconductor manufacturer, is experiencingThe situation is one in which supply and demand instability has worsened due to the fire at the S factory.

Following GM Korea, Hyundai Motor Company and Kia Motors are also experiencing some production disruptions in Korea.

To ensure the smooth procurement of automotive semiconductors, the government has been promoting international cooperation, expedited customs clearance, expedited screening for self-quarantine exemptions, and support for negotiations with companies experiencing supply and demand difficulties.