Driving China on February 14, 2022, Hyundai motor is reportedly considering purchasing home appliance IC controllers as a long-term global chip shortage continues to affect car production.
The South Korean auto giant is testing whether the controllers it currently uses as a replacement for those procured from automakers because home appliance IC controllers are more readily available than those offered by car chipmakers, the sources said. The chip that Hyundai wants to replace is for auxiliary functions rather than the main system, which means that replacement is possible.
Most chips used in cars are exposed to extreme temperatures and subject to large external shocks, so they need to follow higher reliability and safety standards compared to chips used in consumer electronics and appliances.
But chips for headlamps and taillights don't need to follow this higher standard because they don't affect the car's main function.
It is reported that last year's automotive IC shipments increased by 30% compared with 2020, higher than the 22% year-on-year increase in total IC shipments. Demand for automotive chips is much higher than supply, which creates bottlenecks.
Hyundai had to suspend production at its South Korean plant last year due to chip shortages. Earlier this year, it also suspended production at its Alabama plant.
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