Hyundai Mobis to Produce In-House EV Vehicle Chips

Hyundai Motor Company is taking a strategic leap by developing in-house semiconductor chips to power its next generation of smart, connected, and electric vehicles (EVs). Inspired by Apple’s vertically integrated approach, Hyundai aims to gain greater control over its vehicle technology stack amid global semiconductor uncertainties.

Why Hyundai Is Moving Toward Internal Chip Design

The automotive industry is witnessing a surge in demand for customised, high-performance automotive chips to support advanced features such as ADAS (Advanced Driver Assistance Systems), autonomous driving, infotainment systems, and EV power management. By designing chips internally, Hyundai seeks to:

• Mitigate supply chain risks: Reduce vulnerability to global chip shortages that have disrupted vehicle production.

• Optimise vehicle performance: enable tighter integration with Hyundai’s EV and autonomous vehicle platforms.

• Lower long-term costs: Achieve efficiencies through internal chip development at scale.

• Accelerate innovation: Control over both hardware and software allows faster iteration of vehicle features.

Hyundai Mobis Leading Semiconductor Efforts

Hyundai Mobis, the group’s key auto parts and systems subsidiary, will spearhead the chip design initiatives. Already experienced in developing vehicle controllers and sensors, Hyundai Mobis is positioned to create semiconductors tailored to Hyundai’s EV and smart vehicle platforms.

Recent internal restructuring saw Hyundai dissolve its dedicated Semiconductor Strategy Office, redistributing responsibilities across Advanced Vehicle Platforms and procurement teams. This indicates a hybrid strategy, combining in-house chip design with strategic partnerships with external foundries or IP providers.

Global Automotive Chip Trends

Hyundai joins automakers such as Tesla, Mercedes-Benz, and General Motors in investing heavily in semiconductor technologies to support software-defined vehicles and autonomous driving. Following Apple’s successful in-house silicon strategy with M1 and M2 chips, Hyundai aims for tighter hardware-software integration and enhanced vehicle performance.

Looking Ahead

While Hyundai has not confirmed a full-scale in-house manufacturing roadmap, its move toward proprietary chip design signals a bold vision for automotive computing. The company may either establish its own fabrication facilities or collaborate with global foundries like TSMC or Samsung Foundry in the coming years.

This initiative is expected to improve platform integration, reduce dependency on third-party chipmakers, and enable greater customisation, reinforcing Hyundai’s position in the rapidly evolving EV and autonomous vehicle markets.

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