Hyundai Sets Up Subsidiary to Develop Semiconductors, EC Systems

The Hyundai Motor Group has a new electronics subsidiary called Hyundai Autron that will specialize in developing vehicle electronic-control systems.

The emphasis will be on automotive semiconductors, which Korean auto makers Hyundai and Kia currently buy from Infineon Technologies. The company has facilities in Germany, Japan, Singapore and the U.S.

The new Hyundai subsidiary takes over the operations of Hyundai Carnes, located in Namyang, which was founded as a 50/50 joint venture with Germany-based Siemens (since taken over by Continental) in 2005. Hyundai acquired 100% interest in the company in November 2010.

A Hyundai spokesman says the present technical staff of 200 will be doubled to 400 by the end of the year and will reach 500 by the end of 2013.

Carnes software platforms first were applied to Kia cars in 2008 and to Hyundai cars and SUVs in 2009.

The spokesman says due to the increased application of electronics in automobiles today, new vehicles typically use about 200 semiconductors, which constitute 20%-30% of production cost.

While Autron will design the semiconductors with a view to leading in technology and reducing costs, there is no plan at present for the subsidiary to manufacture them. Analysts say Autron may contract with Infineon, or other qualified suppliers, to make the new products.