[Asia Economy Reporter Hyungsoo Park] IE, a semiconductor and module company for electric vehicles, is showing strong performance. It appears that the news of the joint venture IE Power Electronics Co., Ltd., established with the Yancheng city government in China, increasing supply of power modules for electric vehicles to China's largest electric vehicle company has influenced the stock price.
As of 1:28 PM on the 11th, IE is trading at 1,600 KRW, up 18.52% from the previous day.
The power modules supplied by IE Power Electronics Co., Ltd. are power modules for the Electric Water Pump (EWP) system. Six individual power devices are integrated into one power module, simplifying the system assembly process, reducing module size, and providing excellent heat dissipation characteristics.
The power modules for the EWP system are currently supplied to two electric vehicle models of China’s number one electric vehicle company. The number of applicable models is expected to increase to five. Due to the increase in sales volume of electric vehicle models, the delivery volume is rising faster than initially expected at the start of orders. As the number of applicable models increases, the supply volume is expected to continue growing.
An IE official explained, "IE Power Electronics Co., Ltd. has passed the strict reliability and quality standards of China’s top electric vehicle company and also has price competitiveness. After successfully developing a new power module product at the end of last year, we have started full-scale mass production supply targeting electric vehicle companies in China."
IE Power Electronics Co., Ltd. is a joint venture established in July 2019 by IE and the Yancheng city government in China for the development and production of power modules and power controllers. IE holds a 57.2% stake.
IE provides related technical services to IE Power Electronics Co., Ltd. and is set to receive a total of 21 million USD in technology development service fees. Last year, it received the second-year technology fee of 6.3 million USD (approximately 6.9 billion KRW), and so far has received a total of 16.8 million USD (approximately 18.5 billion KRW) for the first and second years.
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