The digital age has revolutionized our lives, embedding "smart" technology into everyday objects. From smartphones to smart TVs and refrigerators, the trend is unmistakable. Now, the automotive industry is on the brink of a similar transformation. South Korea's Hyundai and Kia are at the forefront, leveraging semiconductor technology to lead the smart car market.
The Taiwan Institute for Information Industry (MIC) projects that by 2015, global shipments of automotive microcontrollers will reach 3 billion units, with the vehicle information system market valued at $7.16 billion. This shift towards intelligent vehicles is driven by the need for enhanced connectivity and automation.
In a significant move, Hyundai Kia Automotive Group launched Autron on April 16, marking their official entry into the automotive semiconductor industry. Autron focuses on electronic devices, software platforms, and semiconductor design, aiming to dominate the market through proprietary technology.
Hyundai and Kia's strategy revolves around five key areas:
By mastering these domains, Hyundai and Kia aim to set future industry standards and build a robust platform for automotive electronic devices.
The initiative to venture into the semiconductor industry was spearheaded by Hyundai Motor President Chung Mong-koo. Under his leadership, Hyundai Kia Automotive Group is committed to maintaining its leading position in the evolving car networking era. The focus is on integrating high-quality electronic components into vehicles, such as car DVD players, to enhance the overall driving experience.
Korean companies are investing heavily in the semiconductor industry due to its high growth potential. The development of intelligent vehicles necessitates advanced electronic systems for powertrain, chassis control, safety, and infotainment. The concept of vehicle networking requires seamless wireless connectivity to cloud servers, enabling real-time monitoring of vehicle and driver status.
According to the Taiwan Electrical and Electronic Manufacturers Association, the global automotive electronics market was valued at nearly $191 billion in 2012, with electronic equipment accounting for 40% of vehicle costs. Gartner predicts that the global automotive semiconductor market will reach $25.7 billion by 2014.
Hyundai Kia Automotive Group estimates that electronic components currently account for 20-30% of a car's original price. As technology advances and industrial prices rise, this market share is expected to expand. The vehicle electronic device market, already exceeding $20 billion, is poised for accelerated growth.
Hyundai and Kia's foray into the automotive semiconductor industry is a strategic move to lead the smart car revolution. By focusing on key technological areas and leveraging proprietary technology, they aim to set industry standards and capture a significant market share. As the demand for intelligent vehicles grows, Hyundai and Kia are well-positioned to drive the future of automotive innovation.
For more insights on the automotive semiconductor industry, you can refer to Gartner's automotive semiconductor market report and Taiwan Electrical and Electronic Manufacturers Association's market analysis.
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