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Hyundai Motor plans to use own chips from 2020

PUBLISHED : March 27, 2017 - 16:20

UPDATED : March 31, 2017 - 13:08

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[ET NEWS] Hyundai Motor Group has started developing its own automotive chips that are likely to be used in its new cars from 2020, industry sources said on March 27. 

The auto giant’s chip-making unit Hyundai Autron has recently inked deals with three semiconductor manufacturers -- Germany’s Infineon and Elmos Semiconductor and French-Italian chipmaker STMicroelectronics -- for the chip production. 




Autron, along with Hyundai Motor, will decide specifications and functions of the chips, while the makers will be responsible for the chip design and production.

Hyundai set up Autron in 2013 with aims to develop its own chips. But little progress has been made and the firm has focused more on purchasing chips for the carmaker.

With the latest deal, sources say, Hyundai plans to reduce the number of car parts and production costs overall while strengthening its own chip prowess in the long term.

Hyundai has hired a growing number of engineers from chipmakers, especially Samsung Electronics, in recent years. Autron CEO Kim Jae-beom led the business planning team at Samsung’s chip business division before joining the carmaker in 2013.

By Han Ju-yeop (powerusr@etnews.com)  (theinvestor@heraldcorp.com)  
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