Hyundai Mobis has announced that its board of directors has approved the acquisition of the semiconductor division of Hyundai Autron. Upon receiving the approval, Hyundai Mobis and Hyundai Autron signed a contract to transfer all related employees and assets. The acquisition cost was $122 million (KRW 133.2 billion).

With this acquisition, Hyundai Mobis says it plans to develop the capability of designing, developing and verifying semiconductors for vehicles and subsequently differentiate its integrated control technology in the automotive area.

Hyundai Mobis said it has faced difficulties in developing system-optimized semiconductors and verifying their quality as controller specification and semiconductor development were not integrated. However, the acquisition is expected to enable the centralized development of semiconductors and controller on system basis, and boost synergy in semiconductor design and control system development.

Hyundai Mobis also plans to shift its focus on developing system semiconductors, power semiconductors and high-performance semiconductors with enhanced development capability in automotive semiconductors. In the future automotive field, which encompasses autonomous driving and electric vehicles, the competitiveness of controller units depends on the performance of the semiconductors meaning that there will be an increase in demand for semiconductors.

In the long run, Hyundai Mobis maintains it will be able to strengthen its HW/SW technology and semiconductor development capability and 'differentiate itself and its technological prowess in the future automotive field'.