The South Korean automotive manufacturer, Hyundai Motors has recently announced to manufacture its semiconductor chips from now onwards. The company has taken this decision so as to become more self-reliant and least dependent on various chipmakers.
The automobile manufacturers halted their production as the demand for cars dropped during pandemic, while simultaneously electronics manufacturers began ramping up their supplies of laptops and computer systems following a raise in its demand, consuming more chips than ever. As soon as the purchasing power for vehicles began to skyrocket post pandemic, the automakers started facing the chip shortage.
Moreover, the need for chips has become stronger since many OEMS have announced to go electric in future. Hyundai Motors on the other hand, has decided to follow the suite of Tesla and General Motors by plannin.
Leigh added that while he believes it won’t scale and that many automakers would likely try to undertake their own chip development, it’s not always possible because they lack the necessary skills.
Despite lacking its own supply, Munoz said Hyundai Motor still intends to manufacture electric cars in the US in 2019. The business can choose to expand and modernize its factory in Alabama. The COO, who also serves as president of Hyundai Motor North America, begged the US government to permit cars made in both union and non-union facilities to be eligible for the proposed $4,500 EV tax credit incentives. Every factory owned by Tesla, Toyota, and Rivian is union-free, with the exception of Hyundai’s U.S. locations.
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