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Hyundai to develop own chips to reduce dependency on chipmakers

By Shubhangi on Oct 14, 2021 | 04:34 AM IST

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Hyundai COO said the worst has passed for the global chip shortage.

Hyundai Mobis, company’s parts affiliate, would be very important for the chip development plan.

Hyundai Motor said on Wednesday that it plans to develop its own chips amid a global shortage of semiconductors in the middle of a pandemic.

The chief operating officer of the South Korean automaker said that Hyundai faced the “toughest months” in August and September as some factories were temporarily shut. He also said that the worst has passed for the global chip shortage.

"The (chip) industry is reacting very, very fast," said COO Jose Munoz, adding Intel is investing a lot of money to expand capacity.

"But also in our case, we want to be able to develop our own chips within the group, so we are a little bit less dependent in a potential situation like this," he said.

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"This takes a lot of investment and time, but this is something we're working on."

Munoz said the company’s parts affiliate Hyundai Mobis would be very important for the chip development plan.

Company’s performance amid chip shortage

He also said that the company expects to deliver vehicles as decided in the original business plan in the fourth quarter. Hyundai, along with Toyota and Tesla, was among the automakers which increased global sales amid chip shortage.

Hyundai did not reduce orders as the Asian market was recovering stronger than expected, said Munoz.

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The company is set to produce electric cars in the United States in 2022, and is planning to enhance Alabama factory and increase its production capacity, he said.

The global semiconductor shortage—which ignited due to increasing demand of laptops and electronic products in the pandemic—has deeply affected automakers.

Picture Credits: Reuters

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