German chip manufacturer Infineon has inked a significant multi-year agreement with automotive giants Hyundai and Kia to supply crucial power semiconductors for their electric vehicle (EV) production.
The deal, extending until 2030, will see Infineon provide silicon carbide and silicon power modules and chips to Hyundai and Kia, with both automakers offering financial support to facilitate the project.
Heung Soo Kim, Hyundai’s Executive Vice President, emphasized the strategic significance of the partnership, stating, “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.”
Infineon Technologies, a leading player in power semiconductors, will play a vital role by supplying silicon carbide (SiC) and silicon (Si) power semiconductors. The company plans to construct and reserve manufacturing capacity dedicated to the production of SiC, Si power modules, and chips for Hyundai and Kia until 2030. Financial contributions from the automakers will support this capacity build-up and reservation.
Peter Schiefer, President of Infineon’s Automotive Division, emphasized their commitment to delivering premium products of high quality to address the surging demand for automotive power electronics. He stated, “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.”
Infineon’s power semiconductors are viewed as crucial enablers for the shift towards electromobility. The transition is expected to fuel significant market growth for power semiconductors, especially those based on wide bandgap materials like SiC. With the substantial expansion of its Kulim fab, Infineon is set to build the world’s largest 200-millimeter SiC power fab, reinforcing its market-leading role as a high-quality, high-volume supplier to the automotive industry.
In alignment with Infineon’s multi-site strategy, the Kulim facility will complement the company’s existing manufacturing capacity in Villach, Austria, and support further capacity expansions in Dresden, Germany.
Jason Chae (Vice President of the Semicon Strategy Group at Hyundai Motor Company), Heung Soo Kim (Executive Vice President and Head of Global Strategy Office at Hyundai Motor Group), Peter Schiefer (President of Infineon’s Automotive Division), Peter Schaefer (Executive Vice President, Sales, Marketing and Distribution of Infineon’s Automotive Division)