The global Chief Operating Officer of Hyundai Motor announced Wednesday that the South Korean automaker plans to develop its own chips to reduce dependence on chipmakers.
This year, a global shortage of semiconductors, caused in part by rising demand for laptops and other electronic products during the pandemic, has severely affected auto production lines worldwide.
Hyundai has temporarily shut down some factories, but global COO Jose Munoz believes the worst for the chip shortage in the industry is over, adding that Hyundai had its “toughest months” in August and September.
He mentioned that the company’s parts affiliate Hyundai Mobis would lead the in-house development plan.
He also said that Hyundai Motor intends to deliver vehicles in the fourth quarter at the level of its original business plan, offsetting some of its production losses by 2022.
Along with Toyota and Tesla, Hyundai is one of a handful of automakers that have increased its global sales despite the global chip shortage.
After Asian markets recovered more strongly than expected, Hyundai decided not to cut orders during the pandemic, Munoz said.
Hyundai Motors North America is on track to produce electric cars in the U.S. by 2022 and is aiming to expand its existing Alabama factory operations and increase production capacity.