HYUNDAI: As chip supply improves, auto production will rebound in the first half of the year

Source: Reuters

South Korea's Hyundai Motor Company predicted on Tuesday that its car production will rebound in the first half of this year due to the gradual alleviation of global chip shortages from the second quarter, and sales in North America, the largest market, will increase by 20%.

According to Reuters, Hyundai executive vice president Seo Gang Hyun said on a conference call that "the normalization of supply and demand for automotive chips is expected to be achieved in the third quarter, when the capacity of semiconductor companies will rise." ”

Seo Gang Hyun pointed out that due to the proliferation of Omicron, chips will continue to be in short supply in the first quarter (January to March) of this year. "Due to the continued spread of the COVID-19 epidemic in Southeast Asia, coupled with difficulties in chip procurement, Hyundai's sales in 2021 have not reached the target of 4 million units."

Southeast Asia is the hub that drives the world's basic chip supply for cars, smartphones and home devices, with Malaysia's chip packaging industry accounting for more than a tenth of the world's total trade of more than $200 billion. Since last year, the lockdown in Southeast Asia due to the pandemic has disrupted several industries.

(Proofreading/Yuki)