Since the critical whirling vibration frequency of high speed built-in type motor spindle systems is dependent on the rotor mass of the built-in motor and the spindle specific bending modulus, the rotor and the shaft were designed using magnetic powder containing epoxy and high modulus carbon fiber epoxy composite, respectively. In order to increase the amount of the magnetic flux of the composite squirrel cage rotor of an AC induction motor, a steel core was inserted into the composite rotor. From the magnetic analysis, the optimal configurations of steel core and conductor bars for the dynamic characteristics of the rotor system were determined and proposed. The temperature dependence of composite squirrel cage rotor materials was investigated by various experiments such as TMA, DMA and VSM.