SAN FRANCISCO, Oct 13 (Reuters) – Hyundai Motor’s (005380.KS) world working officer stated on Wednesday the automaker needs to develop its personal chips to cut back reliance on chipmakers.
A worldwide scarcity of semiconductors, triggered partly by surging demand for laptops and different digital merchandise throughout the pandemic, has shuttered some auto manufacturing strains globally this yr. learn extra
Hyundai quickly suspended some factories, however the firm’s world chief working officer Jose Munoz advised reporters the worst has handed for the business chip scarcity, including it had the “toughest months” in August and September.
“The (chip) industry is reacting very, very fast,” he stated, saying Intel (INTC.O) is investing some huge cash to increase capability.
“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 stated.
“This takes a lot of investment and time, but this is something we’re working on.”
He stated the corporate’s elements affiliate Hyundai Mobis (012330.KS) would play a key function within the in-house improvement plan.
He additionally stated Hyundai Motor aims to ship autos on the degree of its unique marketing strategy within the fourth quarter, and offset a few of its manufacturing losses subsequent yr.