Infineon Inks Agreement with Kia and Hyundai for Chip Supply

Infineon, a German chipmaker, announced on Oct 18 that it has secured a multi-year arrangement with Hyundai and Kia to supply power semiconductors to produce electric vehicles. It said in a statement that it will create and reserve manufacturing capacity to deliver silicon carbide and silicon power modules and chips to Hyundai and Kia until 2030, with the two automakers contributing financially to the initiative.

"This collaboration not only enables Hyundai Motor and Kia to stabilize their semiconductor supply, but it also positions us to solidify our leadership in the global EV (electric vehicle) market," said Heung Soo Kim, Hyundai's Executive Vice President in a statement.

Infineon sells semiconductors and systems to the automotive, industrial, and multimarket industries, as well as chip cards and security devices. Infineon has subsidiaries in Milpitas, California, Singapore, and Tokyo, Japan, in the Asia-Pacific area.

Infineon has several facilities in Europe, including one in Dresden. The high-power segment of Infineon is located in Warstein, Germany; Villach, Graz, and Linz, Austria; Cegléd, Hungary; and Italy. It also has research and development centers in France, Singapore, Romania, Taiwan, the United Kingdom, Ukraine, and India, as well as manufacturing operations in Malaysia, Singapore, Indonesia, and China. In Porto, Portugal, there is also a Shared Service Centre.