Hyundai Mobis, South Korea's leading auto parts maker, has announced plans to significantly increase its investment in electric vehicle (EV) parts and automotive chips this year. The announcement was made during the Mobis Mobility Day event in Silicon Valley, where the company showcased its technological advancements and future visions to business partners.
Mitchell Yun, an official from Mobis Ventures Silicon Valley, the innovation hub of Hyundai Mobis in the region, revealed that the firm plans to allocate around 70 percent of its total investment to EV parts in 2024, a substantial rise from the current 50 percent, according to Yonhap news agency.
Yun highlighted that despite a temporary slowdown in global demand for EVs, the industry is set to transition toward eco-friendly vehicles. However, he did not provide specific details regarding the total amount of investment.
In addition to EV parts, Hyundai Mobis will also ramp up investment in automotive chips. Yun emphasized the critical need for a stable semiconductor supply chain, especially in light of recent global shortages. The company is exploring investments in both startups and established companies to secure this supply.
Conversely, Hyundai Mobis plans to significantly reduce investment in self-driving technologies. Yun cited the high costs and current limitations of achieving a full autopilot system as the primary reasons for this strategic shift.
These strategic investments align with Hyundai Mobis’s broader vision to lead in the evolving automotive industry by focusing on sustainable and high-demand technologies. The company’s commitment to expanding its footprint in the EV and semiconductor sectors underscores its proactive approach to adapting to market trends and ensuring long-term growth.