Among the worst-hit sectors due to semiconductor shortages is automotive. The global chip shortage since 2020 forced several automakers to cut factory output by several million vehicles. As the industry continues to deal with it, several companies have started building their own chip. Tesla was one of the early movers in the space. To reduce its reliance on the Asian chip manufacturers, it stated manufacturing its own chip in 2016 itself.
Joining the league is South Korean automotive giant – Hyundai Motors. As the company expects to experience normalcy soon, it is preparing itself to deal with the competition through the new move. Though the automaker believes it won’t be able to fully catch up on production, its global CEO José Muñoz believes that having in-house chip manufacturing will keep the company safe from any future unforeseen circumstances.
Reuters reported him saying, “The (chip) industry is reacting very, very fast.” He also quoted that the worst has passed for the industry chip shortage, and the company had its toughest months in August and September. The carmaker has to temporarily shutdown some factories this year, however, looking at Intel’s massive investment plans to expand capacity makes José positive.
Besides making chips in-house, Hyundai Motor also plans to deliver vehicles at the level of its original business plan in the fourth quarter this year.
