BERLIN (Reuters) – German chip manufacturer Infineon has announced a multi-year agreement with Hyundai and Kia to supply power semiconductors for electric car production. This partnership will run until 2030 and will see Infineon reserve manufacturing capacity to provide silicon carbide and silicon power modules and chips to Hyundai and Kia. Both carmakers will contribute financially to the project, allowing them to stabilize their semiconductor supply and strengthen their position in the global electric vehicle market.
In a statement, Heung Soo Kim, Hyundai’s Executive Vice President, said, “This partnership not only empowers Hyundai Motor and Kia to stabilize its semiconductor supply but also positions us to solidify our leadership in the global EV market.”
According to Infineon, power semiconductors are a crucial component of electric vehicles, enabling the efficient management of battery power and the conversion of electric energy. As demand for electric cars continues to rise, reliable semiconductor supply becomes increasingly important.
This partnership with Infineon will provide Hyundai and Kia with a stable supply of power semiconductors, allowing them to meet growing demand for their electric vehicles while maintaining high product quality and reliability.
Infineon is a leading global semiconductor manufacturer, specializing in power management solutions. The company’s technologies are used in a wide range of industries, including automotive, industrial, and telecommunications.
Hyundai and Kia are major players in the electric vehicle market, with several popular electric models in their lineup. Both companies have ambitious plans to expand their electric vehicle offerings in the coming years and increase market share.
By securing a long-term supply of power semiconductors from Infineon, Hyundai and Kia can ensure the uninterrupted production of electric vehicles and avoid potential supply chain disruptions.
The global electric vehicle market is experiencing rapid growth, driven by increasing environmental concerns and government initiatives to reduce carbon emissions. Reliable semiconductor supply plays a crucial role in supporting this growth and enabling automakers to meet rising consumer demand for electric vehicles.
This partnership between Infineon, Hyundai, and Kia is a strategic move that positions all three companies for success in the fast-growing electric vehicle market. It highlights the importance of collaboration and supply chain resilience in the automotive industry and sets a precedent for future partnerships in the semiconductor space.
As the demand for electric cars continues to rise, semiconductor manufacturers will play a vital role in supporting the expansion of the electric vehicle market and driving the transition to sustainable transportation.
Reporting by Rachel More
Editing by Louise Heavens
