Electronics firms flock to auto industry as electric and autonomous vehicles spread = Korea

While Samsung Electronics and LG Electronics will participate in the IAA Mobility 2023 mobility exhibition to be held in Germany in September for the first time, Hyundai Motor, which has participated in the exhibition every year, has decided not to participate. The fact that electronic companies participate in mobility exhibitions without finished car manufacturers suggests that automotive semiconductors will have a great influence on the market in the future.

If electric vehicles (EVs) are to replace fossil fuels, the supply of electricity is essential, and semiconductors make this possible. Infotainment is also becoming more important in autonomous vehicles, increasing the need for parts.

As the ratio of electrical components business increased, Harman, which is in charge of the electrical components business under the umbrella of Samsung Electronics, signed contracts with European and American finished car manufacturers. Focus on supplying infotainment systems. In addition, LG Electronics plans to expand the market centered on three companies: the VS business headquarters in charge of infotainment, LG Magna in charge of EV powertrains, and ZKW in charge of lighting systems.

However, large overseas companies are also entering the mobility market, and competition is expected to intensify. According to Strategy Analytics, a US market research company, the scale of the global electrical components market has reached 181 billion dollars, and 178 billion dollars for smartphones. It is said to exceed the parts market. An industry insider said, "Mobility is emerging as a trend again. At 'IAA Mobility 2023,' the technological capabilities of electrical components will be emphasized."