Korean media: Due to the global chip shortage, Hyundai Motor is considering purchasing IC controllers for household appliances

According to Korean media TheElec, as the long-term global chip shortage continues to affect automobile production, Hyundai Motor is considering purchasing IC controllers for household appliances.

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The South Korean auto giant is testing whether the controllers can replace those controllers it currently uses, which it purchases from automotive chipmakers, the sources said.

Because HOME APPLIANCE IC controllers are more readily available than chips provided by automotive chipmakers.

The sources said the chip that Hyundai wants to replace is for auxiliary functions rather than the main system, meaning a 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.

IC Insights noted in a recent report that automotive IC shipments increased 30% last year from 2020, higher than the 22% year-on-year increase in total IC shipments. IC Insights also said 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. (Proofreading/Aaron)