SAN FRANCISCO, Oct 13 (Businesshala) – Hyundai Motor’s (005380.KS) global operations officer said on Wednesday that the automaker is looking to develop its own chips to reduce dependence on chipmakers.
A global shortage of semiconductors due to increased demand for laptops and other electronic products during the pandemic has led to the closure of some auto production lines globally this year.
Hyundai temporarily suspended some factories, but the company’s global chief operating officer Jose Munoz told reporters that the industry’s worst times for chip shortages had passed, with August and September being the “toughest months”.
“The (chip) industry is reacting very rapidly,” he said, adding that Intel (INTC.O) is investing a lot of money for capacity expansion.
“But even in our case, we want to be able to develop our own chips within the group, so we are a little less dependent on this kind of potential situation,” he said.
“It takes a lot of investment and time, but it’s something we’re working on.”
He added that the company’s parts partner Hyundai Mobis (012330.ks) will play a key role in the in-house development plan.
He also said that Hyundai Motor aims to deliver vehicles at the level of its original business plan in the fourth quarter, and offset some of its production losses next year.