Hyundai Motor Group (HMG) has signed a new agreement with Infeon to secure stable supplies of power chips for forthcoming electric and hybrid vehicles.

Infineon, the global automotive power chip manufacturer, has agreed to build and allocate additional manufacturing capacity to supply silicon carbide and silicon power modules and chips for use in Hyundai, Genesis and Kia electric and hybrid vehicles through to 2030.

HMG will contribute funding for capacity increases to secure Infineon’s dedicated support.

The automaker also agreed to work closely with Infineon to improve the performance of its electric and hybrid vehicles.

Power semiconductors convert, control and distribute power in electric and hybrid vehicles, helping to reduce energy consumption and improve range. Vehicles require customised power chips to optimise their performance which limits their supply.

The new agreements were signed at Infineon’s headquarters in Munich, Germany, at a meeting attended by HMG global strategy office chief Kim Heung-soo, Infineon automotive division president Peter Schiefer and other executives.

Kim said in a statement: “This partnership.... empowers Hyundai Motor and Kia to stabilise their semiconductor supply."

Schiefer said: “We contribute [high quality] products, our system knowledge and application understanding combined with continued investment in manufacturing capacity to address the increasing demand for automotive power electronics."