Sole Germany’s Defective Semiconductor Shock… Ioniq 5 caught again

Infineon, Germany, the world’s No. 1 automotive semiconductor company that supplies power module chips (IGBT) to Hyundai Motor’s Ioniq 5, has produced large-scale defective products. As the two months’ worth of chips were completely scrapped, the possibility of a disruption in the production of the Ioniq 5 from this month increased.

According to the industry on the 3rd, Infineon recently recognized that a defect occurred in the power module chip produced from early April to early June. It is known that a defect occurred in the process of implanting aluminum ions, the latest process, instead of the existing nitrogen ions.

Chips produced in early April were scheduled to be supplied to Hyundai from mid-August. However, as all of them were discarded, normal supply became impossible. Considering that defects occurred until early June, supply disruption is expected to continue until at least mid-October.

Hyundai Motor is looking for a way to prevent the production disruption of the Ioniq 5 by mobilizing all global automotive semiconductor suppliers. However, the industry forecast is that it will be difficult to shorten the supply schedule. An Infineon official said, “We are concerned that the global semiconductor supply shortage will intensify for the time being. We are working hard to meet the minimum demand.” If the production setback materializes, the waiting period for the Ioniq 5 is expected to be longer. The Ioniq 5 is a model that has to wait more than a year even on the basis of this month’s contract.

‘Global storm’ Ioniq 5, ankles in ‘bad chip riot’…獨 Infineon’s large-scale defect situation
Disposal of all power module chips for two months… “Based on the current standard, we have to wait one year for delivery”

Hyundai Motor Company, which has been increasing production every month since this year, met with a bad news of ‘bad semiconductors’. This is because defective products of Germany’s Infineon, the world’s No. 1 automotive semiconductor company, are expected to affect Hyundai Motors as well. As the global automotive semiconductor supply shortage is slowly easing, it was planned to increase production in the second half of the year, but industry analysts say that it will not be easy.

○2 months’ worth of power module chip supply disruption

Infineon is supplying semiconductor chips (IGBT) and power modules with these chips to Hyundai Mobis. Hyundai Mobis assembles a PE (Power Electric) system with this module, makes PE modules, and supplies it to Hyundai Motor Company. This PE module is mounted on the Ioniq 5.

IGBT is one of the power semiconductor devices and is a core component of electric vehicles. The power module with this chip converts the direct current (DC) stored in the battery into alternating current (AC) and supplies it to the driving motor. It takes three months to produce a semiconductor chip and one month to make it into a module. It takes 4 months from wafer input to finished product production.

It was in early April that a defect occurred in the power module chip produced by Infineon. It was the amount to be supplied to Hyundai Motors from mid-August, four months later. Supply disruption is expected from this month. Considering that defective products have been produced for two months, the supply shortage is expected to continue until mid-October.

○Emergency airlift for replacement products by air

Hyundai Motor is preparing a top-priority supply plan through Infineon TFT. It is said that it is not easy to shorten the delayed supply schedule. Hyundai Motor Company started to come up with alternatives. It is developing an alternative product through STMicro, Switzerland, the world’s fifth-largest automotive semiconductor company. Global automotive semiconductor companies are also making efforts to ship chips by air.

Nevertheless, the industry observes that some production disruptions will be inevitable. In the shipment information for each vehicle model delivered to its branches this month, Hyundai Motors informed the IONIQ 5 that “the current standard expected delivery period is more than 12 months, and there is a possibility that there is a possibility of additional semiconductor supply shortages.”

It is pointed out that the solution to the recurring supply shortage of semiconductors is internalization. Hyundai Mobis recently announced its goal of producing many automotive semiconductors in-house in its second quarter earnings announcement. Hyundai Mobis explained, “We are developing for internalization with a focus on power semiconductors. Nevertheless, it is analyzed that high-performance semiconductors require external cooperation.

○ U.S. sales fell more than 10% last month

Last month, as production disruptions continued due to a supply shortage of automotive semiconductors, Hyundai Motor and Kia’s sales in the US (128,283 units) fell 10.8% from the same period last year. This is because the U.S. auto market itself has contracted due to lack of inventory. Hyundai Motor (65,834 units) fell 10.6% and Kia (62,449 units) fell 10.9%. However, considering the fact that the average sales volume of competitors whose earnings were published, such as Toyota (-21.2%) and Honda (-47.4%), decreased by 24.8% from last year, it is a relatively good performance.

Although the overall performance of the US has decreased, eco-friendly cars are doing well. Hyundai and Kia sold 15,109 eco-friendly cars, up 33.2 percent from July last year. Among them, there were 4,966 electric vehicles, a 139.8% increase. Hybrid cars also sold 10,114 units, recording an increase of 9.7%. As Kia plans to sell the new Niro Hybrid from October, the growth is expected to continue.

Reporter Il-gyu Kim/Hyung-gyu Kim [email protected]