According to reports, Infineon recently confirmed that the power module chips produced from the beginning of April to the beginning of June were defective. The specific reason was that there was a defect in the process of replacing the existing nitrogen ions and implanting the latest process aluminum ions.
According to the original plan, the chips produced by Infineon in early April should be supplied to Hyundai Motors from mid-August, but they cannot be supplied normally because they are all scrapped. According to Korean media, the supply disruption is expected to continue until at least mid-October, considering that all products as of early June have experienced bad conditions.
Hyundai Motor is in discussions with Infineon and other global automotive semiconductor suppliers to find solutions for IONIQ 5 production without interruption. However, the industry predicts that it will be difficult for Infineon to significantly shorten the supply schedule.
An Infineon South Korean official said that the company is worried that the global semiconductor supply shortage will intensify in the short term, and is trying its best to meet the minimum demand.
Infineon supplies semiconductor chips (IGBTs) and power modules with the chips to Hyundai Mobis. Hyundai Mobis uses this module to assemble a PE (Power Electric) system to make a PE module and supply it to Hyundai Motors. This PE module will be installed in IONIQ 5.
If production is interrupted, the IONIQ 5 will have a longer outbound wait time. For the IONIQ 5 model, even this month’s contract needs to wait more than 1 year. The IONIQ 5 is currently one of the most popular pure electric models under Hyundai. According to Yonhap News Agency, the pre-sale volume on the first day of pre-sale in February 2021 exceeded 23,000 units, the largest pre-order record for a Korean car.
The IGBT is the core component of an electric vehicle. The function of the power module with this chip is to convert the direct current (DC) stored in the battery into an alternating current (AC) and supply it to the drive motor. It takes three months to produce semiconductor chips alone, and one month to make modules. That is to say, it takes 4 months from inputting wafers to producing finished products.
Infineon is the world’s largest supplier of automotive chips. Benefiting from the global shortage of cores and the development of new energy vehicles, Infineon’s performance has also maintained rapid growth. Infineon’s second quarter results in fiscal 2022 achieved revenue of 3.298 billion euros, a year-on-year increase of 22%, and net profit of 469 million euros. Infineon expects revenue of about 3.4 billion euros in the third quarter, and profit margins are expected to be around 21%. The full-year revenue was 13 billion-14 billion euros, and the profit margin remained at around 22%.