Hyundai Motor Company, Kia Corporation, and Infineon Technologies have entered into a multi-year supply agreement for silicon carbide (SiC) and silicon (Si) power semiconductors. This partnership aims to secure a stable supply of power semiconductors for electric vehicles (EVs) until 2030. Infineon will develop manufacturing capacity, and Hyundai/Kia will provide financial support. The collaboration positions Hyundai/Kia to enhance their presence in the global EV market and underpins the transition to clean, efficient EVs. This move reflects the growing importance of power semiconductors in the automotive industry’s shift towards electromobility.
Hyundai Motor Company, Kia Corporation, and Infineon Technologies AG have announced a significant multi-year supply agreement for power semiconductors, specifically silicon carbide (SiC) and silicon (Si) power semiconductors. This partnership is a strategic move that will significantly impact the electric vehicle (EV) market.
Under this agreement, Infineon will commit to building and reserving manufacturing capacity to supply SiC, Si power modules, and chips to Hyundai and Kia until the year 2030. In support of this capacity expansion, Hyundai and Kia will provide financial contributions to ensure the successful execution of the partnership. This collaboration between the automotive giants and a leading semiconductor manufacturer holds the potential to revolutionize the EV market.
Heung Soo Kim, the Executive Vice President and Head of the Global Strategy Office (GSO) at Hyundai Motor Group, emphasized the strategic importance of the partnership. He stated, “Infineon stands as a valued strategic partner, boasting steadfast production capabilities and distinct technological prowess within the power semiconductor market. This partnership not only empowers Hyundai Motor and Kia to stabilize their semiconductor supply but also positions them to solidify their leadership in the global EV market, underpinned by their competitive product lineups.”
Peter Schiefer, the President of Infineon’s Automotive Division, underlined the transformative role of semiconductors in the automotive industry’s evolution. He explained, “The future car will be clean, safe, and smart, and semiconductors are at the heart of this transformation. As a trusted partner, we are proud to advance our long-term partnership with Hyundai/Kia. We contribute premium products of high quality, our system knowledge, and application understanding, combined with continued investments in manufacturing capacity, to address the increasing demand for automotive power electronics.”
Infineon’s power semiconductors, particularly those based on wide bandgap materials like SiC, play a vital role in the transition to electromobility. The demand for power semiconductors is expected to surge as the automotive industry shifts towards electric vehicles. To address this growing demand, Infineon is expanding its manufacturing capacity significantly.
As part of its expansion strategy, Infineon will establish the world’s largest 200-millimeter SiC power fab at its Kulim facility. This expansion is in line with Infineon’s multi-site strategy and will complement its existing manufacturing capacity in Villach, Austria, as well as further capacity expansions in Dresden, Germany. This comprehensive approach ensures that Infineon maintains its position as a high-quality, high-volume supplier to the automotive industry.
The partnership between Infineon, Hyundai, and Kia not only secures a stable supply of critical power semiconductors but also contributes to the development of clean, efficient, and high-performance EVs. This collaboration is a crucial step toward realizing the vision of a future where EVs are not only environmentally friendly but also safe and technologically advanced.
The transition to electric mobility is a significant trend in the automotive industry, and partnerships like this one help accelerate this transformation. By joining forces, automotive manufacturers and semiconductor leaders can drive innovation and bring cutting-edge EVs to market. Infineon’s commitment to expanding its manufacturing capabilities aligns with the growing demand for sustainable and efficient electric vehicles. This partnership sets the stage for a promising future for the EV market.
About Infineon
Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The company has around 56,200 employees worldwide and generated revenue of about €14.2 billion in the 2022 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market.
