TechDogs-"Will Hyundai And Kia’s Multi-Year Deal With Infineon Help Them Race Ahead In The EV Market?"

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Will Hyundai And Kia’s Multi-Year Deal With Infineon Help Them Race Ahead In The EV Market?

By PR Newswire

PR Newswire

Updated on Fri, Oct 20, 2023

Overall Rating
Electric Vehicles are powering their way through the global automotive market and are emerging with great promise.

Aside from their environmental benefits, EVs also bring cost-saving benefits and are being promoted by governments around the world, with some even offering tax benefits.

Moreover, EV manufacturers are infusing technology not just into final products but also in the manufacturing processes involved. This is leading to numerous strategic partnerships being struck between tech firms and automakers.

One such partnership was announced between Infineon Technologies AG and Hyundai Motor Company and Kia Corporation.

What’s it all about? Let’s explore:

What Was The Announcement About?

  • With a contract signing ceremony on October 17 and press releases on October 18, Infineon along with Hyundai and Kia announced the signing of a multi-year strategic partnership.
  • The agreement will see Infineon supply core power semiconductors used in automotives. These will include diode, insulated-gate bipolar transistor (IGBT) and silicon carbide (SiC) power semiconductors.
  • Infineon will build and reserve manufacturing capacity of the semiconductors with Hyundai and Kia providing financial contributions.
  • It’s expected that the semiconductors will be used in the new electric vehicle models produced by Hyundai, Kia (in which Hyundai maintains 33.88% ownership) and Genesis (which is Hyundai's luxury vehicle division) through 2030.
  • This deal builds on a previous partnership between the parties that’s been in place since the early 2000s, with Infineon supplying power semiconductors to the companies.
  • In fact, the parties have even run a joint research center between 2007 and 2020 to enhance electric vehicle performance. Through the new deal, the parties will further look to improve performance across all-electric, hybrid and plug-in hybrid models.

TechDogs-"An Image From The Signing Ceremony"  

What Does Infineon Bring To The Table?

  • As a company that drives decarbonization and digitalization with its products and solutions, Infineon is recognized as a global semiconductor leader in power systems and IoT (Internet of Things).
  • This makes their semiconductors a key element in the transition to electromobility.
  • Recently, Infineon announced they were expanding their Kulim (Malaysia) power fab with a $5.3 billion investment to make it the world’s largest 200-millimeter silicon carbide (SiC) power fab keeping to the decarbonization trend.
  • This will further enhance its position as a market leading provider of high-quality, high-volume semiconductors to the automotive industry.
  • The Kulim facility will boost the company’s multi-site stance, adding value to its Villach (Austria) and Dresden (Germany) plants.
  • Furthermore, Infineon even purchased Ultra-Wide Band (UWB) technology pioneers 3db Access, which will strengthen the company’s tech portfolio in car access. UWB offers short-range communication and is used to track the location of objects within less than half an inch in distance.
  • According to its website, 3db Access is recognized as the “pioneer of secure low power single-chip UWB technology” and a mass producer of UWB IP in the automotive industry that offers the lowest power consumption UWB chips.

TechDogs-"An Image Of Infineon's Logo On One Of Its Buildings"  

What Did Stakeholders Say About The Partnership?

  • Heung Soo Kim, the Executive Vice President and Head of Global Strategy Office (GSO) at Hyundai Motor Group said, “Infineon stands as a valued strategic partner, boasting steadfast production capabilities and distinct technological prowess within the power semiconductor market.” 
  • [Contd.] “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, underpinned by our competitive product lineups.”
  • Peter Schiefer, President of Infineon’s Automotive Division, said, “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.”
  • [Contd.] “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.”

Do you think this strategic partnership will provide Hyundai and Kia with an edge in the EV market? Do you think competing EV automakers will seek similar deals with tech businesses?

Let us know in the comments below!

First published on Fri, Oct 20, 2023

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