On Wednesday, German chipmaker Infineon announced that it signed a multi-year agreement to supply power semiconductors to Hyundai and Kia for the production of electric cars.

With additional financial contributions and support provided from the two carmakers, the chip company will secure the manufacturing capacity to be capable of supplying silicon carbide and silicon power modules and chips to Hyundai and Kia until 2030, according to a statement by Infineon.

In a statement, Heung Soo Kim, Hyundai’s Executive Vice President, said, “This partnership not only empowers Hyundai Motor and Kia to stabilise its semiconductor supply but also positions us to solidify our leadership in the global EV (electric vehicle) market.”

Infineon Technologies closed at $33.49 on Wednesday,  down 0.68% from the previous day’s closing price. It’s decline exceeded the S&P 500’s loss for the day of 0.01%. For comparison, the Dow gained 0.04%, while the tech-heavy Nasdaq fell 0.25%. Over the past month, Infineon had gained 0.36%, outperforming the computer and technology sector’s 0.05% loss, as well as the 1.6% loss of the S&P 500 over that period.

The upcoming earnings report for the company is expected to show an EPS of $0.68, marking a 7.94% increase over the same quarter one year prior.