The result to be released in the 2nd half of the year
Automotive semiconductor maker IA Inc succeeded in localizing power semiconductors for high power module (HPM: High Power Switch Module) and entered the final verification stage. In the second half of the year, IA Inc may replace Infineon Technologies, a German power semiconductor company, of which parts are installed in the cars produced by the Hyundai Motor Company.
On the 19th, a representative of IA Inc said, “The Hyundai Motor Company is overseeing the verification process after our company succeeded in localizing the power semiconductor technology for HPM. We would be able to replace the power semiconductors produced by Infineon Technologies for Hyundai Motor Company HPM.” The market share of Infineon Technologies in this sector is 70%. If IA Inc actually succeeds in delivering its products, this may cause the import substitution effect. HPM is a module that controls the high-voltage and high-current part input to the power handle motor. IA Inc said, “It will not be a problem to supply mass production when verification is completed.”
Last year, 830,000 units of HPM were supplied to Hyundai Motor Company, and the supply is expected to reach 1.1 million units this year. “It's not just a self-estimate, but a forecast based on data from the Hyundai Motor Company,” said an IA official. According to this forecast, the supply of HPM will reach 1.5 million in 2020 and 2 million in 2021. The average unit price for HPM is $10 to $15 (from 13,000 to 17,000 won). HPM sales this year are expected to reach 11 billion won (1.1 million units) and 15 billion won (1.5 million units) next year. If power semiconductors can be supplied, additional sales can be expected. Because six power semiconductors are used per one HPM, sales will also increase proportionately. Supplying 1.5 million HPMs to Hyundai Motor Company next year will require 9 million power semiconductors.
IA Inc is also expanding into the Chinese market. Although it is possible to generate stable sales in Korea, it is difficult to expect additional sales. Accordingly, IA Inc established a joint venture (JV) of 170 billion won last year in Zhangjiagang City of China. The productivity of this facility has also been improved greatly. Previous sales of the corporation were 8 billion won, but sales of 28 billion won were recorded last year. Last year, the company recorded an operating loss of 6 billion won due to being in an early stage, but it is expected to approach the breakeven point (BEP) this year. This year’s sales target is 40 billion won. An IA Inc official added that an additional JV launch in China is imminent.
Founded in 1993, IA Inc is headquartered in Songpa, Seoul. It was listed on the KOSDAQ in 2000. Last year, the sales were 67 billion won and the operating loss was 1.6 billion won. IA Inc has continued with the process of making proprietary automotive semiconductor technology after CEO Dong-Jin Kim, who moved to IA Inc from the vice chairman positions at Hyundai Motor Company and Hyundai Mobis, took the current position at IA Inc in 2010.