Hyundai Mobis auto chip localization efforts gained momentum as the company formed Korea’s first private-sector semiconductor alliance. Moreover, the company joined forces with 23 domestic firms to cut dependence on imported chips. Consequently, this initiative highlights a strategic push to secure long-term independence in automotive semiconductors.
At the first Auto Semicon Korea forum, Hyundai Mobis gathered major industry players and research institutes. Furthermore, Samsung Electronics, LX Semicon, SK Key Foundry, DB HiTek, and the Korea Electrotechnology Research Institute participated. As a result, the event brought together more than 80 top executives and industry leaders.
Hyundai Mobis auto chip development strategy focuses on creating a stable domestic supply chain. In addition, the company seeks to shorten R&D cycles by nearly two years. Therefore, the alliance aims to accelerate innovation while ensuring durability and reliability in tough automotive conditions.
Unlike consumer chips, auto semiconductors must endure extreme environments and maintain consistent performance. Consequently, high entry barriers limited new market entrants and increased reliance on foreign suppliers. However, Hyundai Mobis intends to change this landscape by promoting local expertise and production capacity.
Industry data shows that Korean firms hold a minor role in the global auto chip market. Only a handful of Korean companies rank among the top 100 worldwide, holding just 3-4 percent share. Furthermore, their presence remains concentrated mostly in memory chips. As a result, Hyundai Mobis identified the urgent need for broader participation.
The company already designs 16 types of semiconductors and produces millions of units annually through external foundries. Moreover, as a tier-1 supplier, Hyundai Mobis plans to act as a critical bridge between automakers and chipmakers. Therefore, it will leverage in-house design skills, controller expertise, and experience in mass production.
With the global automotive semiconductor market expected to exceed $130 billion in coming years, Hyundai Mobis sees vast potential. Consequently, the company plans to expand its forum annually and include startups and other tech firms. In addition, the initiative will attract more players from related sectors into auto chip development.
Hyundai Mobis President Lee Gyu-suk emphasized stronger collaboration with fabless firms and design houses. Moreover, he highlighted deeper ties with leading foundries and new efforts to attract IT and mobile experts. Therefore, the company envisions a stronger ecosystem that will secure Korea’s position in the global auto chip market.
Overall, the Hyundai Mobis auto chip alliance demonstrates a forward-looking approach. It strengthens domestic capabilities, reduces import reliance, and drives future competitiveness for South Korea’s auto industry.
