CIO Insider

CIOInsider India Magazine

Separator

Hyundai to Produce its Own Chips

Separator

Hyundai Motor's ,b>global chief operating officer announced that the company aims to build its own chips to lessen its reliance on chipmakers.

While Hyundai's sales did not suffer too much in the last quarter, Munoz did say that August and September were the toughest months. This year, the South Korean automaker had to temporarily close certain operations, but Munoz claimed that the worst of the chip scarcity had passed, citing Intel's enormous efforts to expand capacity.

The chip industry reacted very, very rapidly, says Munoz and adds that Intel is now investing heavily to expand their chip factory's capacity.

"But, in our case, we want to be able to build our own chips within the organization, so we're a little less reliant in a future situation like this. This will take a significant amount of money and effort, but we are working on it”, continues Munoz.

He stated that the US government should extend its proposed $4,500 tax credit incentive for US electric automobiles produced in both union and non-union companies. He stated, "American laborers are the same. We want everyone to have the same experience."

He indicated that it was a subsidiary of Hyundai Mobis and will play an important role in the in-house chip development plan.

He also stated that Hyundai Motor intends to deliver automobiles at the same rate as planned in the fourth quarter and offset some production losses next year.

Hyundai, along with Toyota and Tesla, is one of only a few automakers to grow global sales despite a chip shortage.

He noted that producing chips in-house would require a significant amount of time and money, but that it's "something we're working on”, most likely in collaboration with Hyundai Mobis, the company's parts subsidiary.

Despite the lack of its own supply, Hyundai Motor is still on pace to produce electric vehicles in the United States next year, with plans to expand its Alabama factory and improve production capacity, according to Munoz. The COO, who is also the president of Hyundai Motor North America, urged the US government to expand the planned $4,500 electric car tax credit to vehicles built in both union and non-union facilities. Rivian, Tesla, and Toyota factories are not unionized, with the exception of Hyundai's U.S. manufacturers.

"After witnessing Asian markets recover quicker than projected, Hyundai opted not to decrease orders during the pandemic," Munoz added.

Hyundai Motor North America President Munoz said the firm was on pace to make electric cars in the United States by 2022, and that the company was contemplating improving and expanding its existing facility in Alabama.

He stated that the US government should extend its proposed $4,500 tax credit incentive for US electric automobiles produced in both union and non-union companies. He stated, "American laborers are the same. We want everyone to have the same experience."

A global shortage of semiconductors, spurred in part by a surge in demand for laptops and other electronic devices during the pandemic, has forced the closure of many auto manufacturing lines around the world this year.

The need for chips has never been greater, since most OEMs have announced robust plans to go electric. Apart from Hyundai, Tesla and GM have revealed intentions to make their own chips, bypassing the middleman.

Current Issue
Extrieve Technologies: A One-Stop-Shop for Document Management Solutions