Chip Shortage May Halt Production Lines

Hyundai Motor Co. and Kia Corp. may suffer production disruptions in April due to a shortage of automotive semiconductors.

With the global auto industry suffering from a shortage of automotive semiconductors, Hyundai Motor Co. and Kia Corp. may suffer production disruptions in April.

Hyundai Motor and Kia currently have two to six weeks of semiconductor inventory for vehicles. They could suffer production disruptions when their inventory is depleted. The Financial Times (FT) reported that Hyundai Motor has been able to hold out so far thanks to its large inventory of semiconductors secured in 2020, but its production may be suspended beginning from April.

Hyundai Motor is adjusting its production plan by reducing production of models loaded with semiconductors whose inventory is insufficient and operating production lines for popular models, but its inventory is also getting gradually exhausted.

Hyundai Motor receives auto parts loaded with semiconductors from parts suppliers such as Bosch, Continental, and Hyundai Mobis. Yet it is also negotiating with semiconductor makers to secure chips for vehicles.

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