[Asia Economy Reporter Hyungsoo Park] Telechips is showing strong performance. It appears to be influenced by the growing importance of semiconductors worldwide as the transition to the digital era accelerates after COVID-19. Hyundai Motor Group has directly embarked on domestic production of automotive semiconductors. This is due to the global semiconductor shortage causing domino shutdowns (temporary production halts) to become a reality. Hyundai Motor expects the damage to increase with additional factory shutdowns and plans to accelerate parts development together with its affiliates and partners. Recently, Hyundai Mobis established a 'Software Development Cooperation Ecosystem Consortium' with software specialists including LG Uplus, Hyundai Autron, Telechips, Obigo, Unitron Tech, ThorDrive, and Amosense.
At 11:48 AM on the 13th, Telechips was trading at 16,900 KRW, up 5.96% from the previous day.
There have been calls to address the recent automotive semiconductor supply shortage from a long-term perspective.
Yesterday, the Korea Automotive Technology Institute revealed in an industry trend report that the most severely affected automotive semiconductor is the microcontroller unit (MCU) that controls electronic systems. Taiwan's TSMC accounts for 70% of global MCU production, but due to overwhelming orders, the production lead time (time from order to delivery) has increased from the usual 12?16 weeks to 26?38 weeks.
Market information firm IHS Markit projected that the automotive production shortfall caused by the semiconductor shortage in Q1 this year would reach 1.3 million vehicles, while global consulting firm AlixPartners forecasted that the global automotive industry's revenue would decrease by approximately 60.6 billion USD this year.
The Korea Automotive Technology Institute is establishing a research and development (R&D) center to support domestic production of automotive semiconductors in Asan, Chungnam Province. Chungnam Province announced that it has attracted the Korea Automotive Technology Institute's automotive semiconductor and autonomous driving R&D campus (Automotive R&D Campus).
It is anticipated that as the automotive paradigm shifts toward eco-friendly and autonomous driving, the global market size for automotive semiconductors will grow from 45 billion USD (50 trillion KRW) last year to 175 billion USD (200 trillion KRW) by 2040.
Telechips possesses semiconductor chip design technology not only for intelligent vehicle semiconductors for autonomous driving but also for smart home solutions. It holds module design technology through domestic production of core control chips for key vehicle functions.
The company was selected as the lead organization for the 'Mobile AI Processor Platform Technology' project under the next-generation intelligent semiconductor technology development program initiated by the government last year. The goal is to expand the domestic AI semiconductor ecosystem and strengthen the competitiveness of domestic fabless semiconductor companies.
Telechips continues to grow by supplying AVN (Audio, Video, Navigation) products as its core business in intelligent automotive solutions. It plans to increase sales by adding car audio and AVN application product lineups in the automotive infotainment market and expanding overseas customers in Japan, China, and other countries. Through research and development in driver assistance system technology, artificial neural network-based image enhancement technology, and artificial neural network-based object recognition technology, Telechips secures core competitiveness for future infotainment systems and expands its application markets through differentiated value propositions.
ADAS (Advanced Driver Assistance Systems), which go beyond merely alerting drivers to risks such as lane departure and inattentive driving, are increasingly being applied to systems that autonomously control vehicles. Although it may take time for fully autonomous vehicles to become practical, the development of high-performance semiconductors capable of real-time perception, judgment, and control functions is essential, so the utilization of ADAS semiconductors developed by Telechips is expected to increase.
Telechips has secured strong trust from customers by rapidly developing and designing high-quality AVN semiconductors for autonomous driving compared to competitors. Through patent management, it holds 133 domestic patents related to semiconductor design, establishing technological barriers against competitors entering the market.
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