In a strategic pivot that echoes Apple’s legendary control over its hardware, Hyundai Motor Group is taking a massive step toward self-reliance by developing its own semiconductor chips. The move, spearheaded by its auto parts powerhouse Hyundai Mobis, is a direct response to the global automotive chaos unleashed by the chip shortage from 2021 to 2023 and signals a new era of vertical integration in the car industry.
For years, automakers have relied on a complex web of global suppliers for the essential silicon that powers everything from infotainment screens to advanced driver-assistance systems. But when that supply chain shattered, production lines ground to a halt, costing the industry billions. Now, Hyundai is deciding that the best way to future-proof its cars is to build the brains itself.
Learning from the Past, Building for the Future
An inside source familiar with the matter has revealed that Hyundai Mobis, the subsidiary specializing in connected cars, autonomous tech, and electrification, is targeting an ambitious goal: by 2030, at least 10% of all chips used across Hyundai, Kia, and Genesis vehicles will be custom-designed in-house.
This isn't a project starting from zero, however. Hyundai Mobis has been quietly building its capabilities for years. The company has already co-developed 16 different system semiconductors with partners and boasts an annual production volume of around 20 million units. It also operates six dedicated production lines for power modules. This established foundation provides a crucial launchpad for its more aggressive, proprietary ambitions.
As reported in a detailed analysis from The Elec, the company’s roadmap is already in motion, with plans to release ten new in-house designed chips over the next two to three years. CEO Lee Gyu-suk has consistently emphasized the need for a "long-term strategy" to systematically reduce dependence on foreign chip vendors.
A "Hybrid" Model: Collaboration is Key to Independence
Unlike Apple, which designs its chips and hands them exclusively to foundries like TSMC, Hyundai Mobis is pursuing a more collaborative "hybrid" model. The strategy involves core in-house design, leveraged with the deep expertise of South Korea's formidable semiconductor ecosystem.
This approach is already yielding tangible projects. The company has officially confirmed a partnership with giants like Samsung Foundry, LX Semicon, and design tool firms Cadence and Synopsys to bring a self-designed network System-on-Chip (SoC) to life. Hyundai Mobis will handle both the design and verification internally.
Other key projects on the horizon include:
- A body-control chip integrating five separate functions, slated for a 2026 release, developed with Dongwoon Anatech and DB Hitek.
- A smart LED solution, co-created with Global Technology, SK Key Foundry, and Dongbu LED.
- The upcoming launch of power management ICs and a critical silicon IGBT (Si-IGBT) power component targeted for 2026.
This strategy of fostering domestic partnerships not only secures Hyundai’s supply chain but also acts as a catalyst for the entire national industry. As one industry observer noted on social media, this level of vertical integration was an inevitable evolution for forward-thinking automakers. A post on X (formerly Twitter) highlighted the growing trend, suggesting that "Hyundai is learning from the best," drawing a clear parallel to the tech sector's playbook.
What This Means for the Cars of Tomorrow
The implications of this chip strategy extend far beyond the factory floor. For consumers, this could mean more seamlessly integrated features, faster over-the-air updates, and potentially more affordable advanced technology in future Hyundai, Kia, and Genesis models. This in-house control allows engineers to design the hardware and software in perfect unison, optimizing performance and efficiency in a way that off-the-shelf chips often cannot match.
This technological push aligns perfectly with the group's aggressive electrification and autonomy plans. The upcoming chips will be the nervous system of the next generation of vehicles, like the highly anticipated new Tucson. While the focus is on the silicon, the benefits will be visible in the metal. For a glimpse at how this tech might be packaged, you can check out the first renderings of the 2026 Hyundai Tucson, a vehicle that will likely benefit from these very developments.
By bringing core chip design in-house, Hyundai Motor Group isn't just avoiding future shortages. It is strategically positioning itself to compete not just as an automaker, but as a technology leader, controlling its destiny from the silicon up.
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