Hyundai Motor Company and Kia Corporation signed a strategic partnership with Infineon Technologies AG to secure power semiconductors in support of the growing electric vehicle demand worldwide. Under the agreement, Hyundai and Kia will purchase core power semiconductors of automotives, including diode, insulated-gate bipolar transistor (IGBT) and silicon carbide (SiC) power modules.

The agreement builds on the two parties’ long-running cooperation on sensor components since the early 2000s. Infineon started supplying power semiconductors to the companies in the mid-2000s, and both parties operated a joint research center between 2007 and 2020 to optimize the electricity performance of vehicles.

Through the partnership, Hyundai Motor and Kia plan to work closely with Infineon to improve the performance of their electrified vehicles, including all-electric, hybrid and plug-in hybrid lineups. In addition, Hyundai Motor and Kia will receive supplies of power semiconductors needed for their electrified models from Infineon through 2030.

The semiconductors are expected to be applied on new electrified models from Hyundai, Kia and Genesis to be launched through 2030. Earlier this year, Hyundai Motor and Kia raised their 2030 annual EV sales targets to 2 million units and 1.6 million units, respectively.

The partnership with Infineon will help Hyundai and Kia reach the above-mentioned targets as Infineon is a renowned global top-tier semiconductor manufacturer with proven technological competitiveness, production quality and mass-production verification history.

Semiconductors are used in vehicles for a wide variety of systems—from powertrain and battery management to safety and infotainment. EVs require more semiconductors than traditional internal combustion engine vehicles and the quantity of sophisticated sensor chips increases with the addition of autonomous driving technologies.

Hyundai Motor and Kia may consider strategically expanding their collaboration with various global partners to secure the supply of core semiconductor components beyond power semiconductors and further strengthen their vehicle competitiveness.