Hyundai Motor plans to develop its own chips

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Hyundai Motors is the latest automaker to announce plans to develop its own semiconductor chips to reduce dependence on chipmakers, according to the company’s global chief operating officer, Jose Munoz.

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As car sales declined during the pandemic, automakers halted their orders, electronics makers began ramping up production, and laptops and gaming consoles sold chips to meet increased demand. current supply of . When consumers started buying vehicles again, automakers faced global semiconductor shortages, which led to most OEMs – other than Tesla Toyota – Inactive production lines due to Decline in car sales. As most OEMs also come up with aggressive plans to go electric, the need for chips has never been stronger. In addition to Hyundai, Tesla and General Motors Has announced plans to make its own chips and cut out middlemen.

While Hyundai’s sales weren’t affected much this past quarter, Munoz said the “toughest months” were August and September, according to Reuters. The South Korean automaker had to temporarily close some factories this year, but Munoz said the worst had passed for chip shortages, citing Intel’s massive investment to expand capacity.


Nonetheless, Munoz told reporters that Hyundai doesn’t want to be caught without supplies again and needs to be more self-sufficient in the space. He acknowledged that developing the chips in-house would take a lot of time and investment, but it’s “something we’re working on,” most likely in conjunction with the company’s parts affiliate Hyundai Mobis.

Bob Leigh, senior market development director for commercial markets at Real-Time Innovation, a software framing company, told Nerdshala, “The ability to secure supply can be a distinguishing feature of successful OEMs that survive industry shakeups and consolidations. ” “It is more likely that OEMs will acquire and/or partner with firms that can secure supply. But, this shortcoming will prompt the industry to adopt new Piece Technologies that are more economical to produce. NS Piece Producers don’t want to create legacy chips What automakers want. “

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Leigh also said that although many automakers will probably move in the same direction to try their own chip development, this isn’t necessarily true because they don’t have the expertise and don’t think it will scale.

Munoz said that even without its proprietary supplies, Hyundai Motors is on track to build electric vehicles in the US next year, with possible plans to expand its Alabama factory and increase production capacity. The COO, who is also president of Hyundai Motor North America, encouraged the US government to extend the proposed $4,500 EV tax credit incentive to non-union factories as well as unionized vehicles. Apart from Hyundai’s US factories, the Rivian, Tesla and Toyota factories are not unionized.

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