Entering the market by developing 'MCU' directly
Internalization of supply chain and strengthening of parts business
LG Electronics is now making their own semiconductors for vehicles. In response to the automobile market where production is disrupted due to a shortage of semiconductor supply, the semiconductor supply chain is internalized. LG Electronics recently entered the automotive micro controller unit (MCU) development business. This is the first time LG Electronics has developed semiconductors for vehicles. It is known that the development manager is in charge of the SIC center in the CTO sector.
LG Electronics is said to be in contact with a semiconductor design company to make their own MCU. It is interpreted as an attempt to internalize the MCU. The LG Electronics CTO division is currently hiring semiconductor experts such as digital logic design and system-on-chip (SoC). All of them are MCU-related fields, and they are the foundation for nurturing their own semiconductor capabilities. It is expected to produce their own MCU products within one to two years at the earliest. LG Electronics MCU is a dedicated processor that controls a specific system. It is responsible for the brain of various electronic products and devices. MCUs are also used to control various electronic components inside automobiles.
LG Electronics' development of automotive MCUs is interpreted as the purpose of securing a stable MCU supply chain. LG Electronics is promoting the auto parts business through the VS Business Headquarters, LG Magna e-Powertrain, and ZKW. In preparation for the impact that the shortage of MCU supply will have on the electronic parts business, the company has started developing MCUs independently. An LG Electronics official said on the 30th, "It is true that internalization of automotive semiconductors is being reviewed internally. However, detailed plans have not been finalized yet."
<Table> Automotive semiconductor market forecast <Source: IHS Market>
By Staff Reporter Dong-jun Kwon (djkwon@etnews.com)