[BizLeader] Shinhwa Contec "700 Million Units of Voice AI Microphones Ordered... Registered as Tier 1 Supplier for Global Automakers"

Entry into Vehicle AI Voice Recognition Microphone Business
Targeting Double Overall Sales Growth by 2026

Lee Jung-jin, CEO of Shinhwa Contec. Photo by Jang Hyo-won

"On the 26th of last month, we were registered as a first-tier vendor for Hyundai Kia Motors. Starting in 2026, Hyundai vehicles will be equipped with AI voice recognition microphones developed by Sinhwa Contec."

Lee Jeong-jin, CEO of Sinhwa Contec, said this in a recent interview with Asia Economy. Sinhwa Contec is a specialized connector development company with technology focused on data communication for electronic devices (USB, Ethernet, etc.). Its major clients include Samsung Electronics and LG Electronics. CEO Lee, a former Samsung Electronics employee, founded the company in 2002 and has led it for 22 years. Currently, Sinhwa Contec holds a 50% market share in the USB segment alone.

With long-standing experience and a stable market share, the company’s performance has been steadily maintained. Sinhwa Contec recorded consolidated sales of 51.9 billion KRW and operating profit of 4.9 billion KRW last year. Over the past decade, the company has maintained similar performance levels without significant fluctuations. Accordingly, Sinhwa Contec has been preparing new businesses for growth over the past 10 years. Among these, the area receiving the most focus is the vehicle AI voice recognition microphone module business.

Traditional vehicle microphones were cylindrical, but as voice recognition technology has advanced, digital MEMS microphones used in mobile phones are increasingly being installed in vehicles. This shift aims to overcome limitations such as differences in voice recognition accuracy depending on direction, surrounding environment, and noise, and to enable accurate voice recognition even in situations where multiple people are conversing.

CEO Lee said, "Voice recognition microphones cannot be assembled without the capability to integrate semiconductors and chips," adding, "Therefore, we judged that the vehicle AI voice recognition microphone business is a fitting venture for Sinhwa Contec, which possesses unrivaled precision design and connector technology."

Recognizing these strengths, Sinhwa Contec was designated as a first-tier partner of Hyundai Kia Motors on the 26th of last month. Additionally, the company is collaborating with 'Cardomsa,' an Israeli AI voice recognition software firm invested in by Hyundai, to develop microphone modules. It has been confirmed that 7 million units of voice recognition microphones will be supplied over six years for Hyundai vehicles starting production in 2026.

CEO Lee forecasted, "AI voice recognition microphones will become increasingly necessary as autonomous vehicles advance. For example, when an ambulance passes by, microphones attached externally can detect the sound and enable the vehicle to yield. This need will arise not only inside but also outside the vehicle, increasing demand."

Notably, AI voice recognition microphones are priced 4 to 5 times higher per unit than conventional microphones, making them high value-added products. CEO Lee predicted, "Once mass production begins in the second quarter of 2026, microphone sales will contribute to overall revenue, which is expected to grow more than twice compared to last year."

There is also a new business already entering the visible performance range. Since December last year, Sinhwa Contec has started the vehicle wiring harness business. Wiring harnesses are components that act like a neural network, transmitting electrical signals generated in various parts of a vehicle between components. Mass production has now fully commenced, and sales have been generated since the fourth quarter of last year.

CEO Lee stated, "Selling harnesses and connectors separately has limitations, but connecting these two to create a single function generates added value. We are targeting communication-specialized wiring harnesses and aiming for annual sales of about 100 billion KRW as we pursue the market."