The South Korean company is the latest automaker to announce plans to develop its own semiconductor chips, a move to reduce its reliance on chipmakers.
This is coming after the global shortage (during the pandemic) of semiconductors ramped up by laptops and gaming consoles; this made automakers pause in their various stages of production. As soon as consumers began buying vehicles, the majority of automakers were met with a shortage of semiconductors which resulted in a dip in sales.
Hyundai has temporarily suspended some of its factories and Jose Munoz, the company's global Chief Operating Officer has this to say: ”the toughest months were in August and September. The chip industry is reacting very, very fast. The company will also need to be more self-reliant.” He also commended that Hyundai wanted to develop its own chip within the Hyundai group, hence, we (Hyundai) are a little bit less dependent in a situation like this.
Sometime in July, about seven auto factories in Europe and North America had to reduce production due to the tiny components. Most affected plants were located in Canada, Germany, Michigan, Kentucky, Mexico and Kansas. Ford, General Motors, Daimler, Tesla and BMW were among the companies having difficulties. Tesla and General Motors also announced their plan to produce their own chips and by doing so, cutting off the middle man.
This doesn't stop the company from being on track to manufacture electric vehicles (EVs) in the United State. They have plans to modify the Alabama factory and also increase production capacity.