Hyundai’s global COO, José MunozMunoz, told reporters that Hyundai doesn’t want to get hit by the supply chain issue again, and so it needs to be more self-reliant in the space.
Amid the global chip shortage, Hyundai has decided to develop its own semiconductor chip to reduce reliance on the chipmakers. With this, it has joined the likes of Tesla and General Motors, who have also announced their plans to develop their own chipsets. According to the company’s global chief operating officer, José Munoz, while Hyundai’s sales didn’t suffer too much this past quarter, it was tough for the company in August and September.
This year, the company had to temporarily shut down some factories, but Munoz said the worst had passed for the chip shortage, referring to Intel’s massive investments to expand capacity. Munoz told reporters that Hyundai doesn’t want to get hit by the supply chain issue again, and so it needs to be more self-reliant in the space. He accepted that developing in-house chips would take a lot of time and investment, but that will be rewarding in the long run.
Due to the global chip shortage, automobile companies are now more concerned about securing the supply. As the industry moves towards EV vehicles with automation, carmakers need to acquire or partner with chip manufacturing firms and sort out ways to produce new chips that are economical yet effective to produce. Even without its proprietary supply, Hyundai is still on track to meet its demands of manufacturing electric vehicles in the U.S. next year. It also has potential plans to upgrade its Alabama factory and increase production capacity.
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