[Exclusive] Hyundai Motor Also Halts Factory Amid Semiconductor Shortage... Discussing Temporary Shutdown

Countdown to Production Cuts Amid Global Vehicle Semiconductor Shortage

Hyundai Motor Company Ulsan Plant

[Asia Economy Reporter Changhwan Lee] Due to the global shortage of automotive semiconductors, Hyundai Motor Company has entered the final countdown for a partial factory shutdown.

According to the automotive industry on the 29th, Hyundai Motor's Ulsan Plant 1 held an emergency meeting on the same day to discuss a temporary shutdown.

Hyundai Motor's Ulsan Plant 1 houses a key production line for models such as the Ioniq 5 and Kona.

It is reported that the company requested discussions with the labor union regarding the shutdown due to difficulties in securing parts such as cameras and some modules, which require a large number of automotive semiconductors.

The shutdown period is expected to be about one week starting early next week. The schedule may change depending on future labor-management negotiations.

If the factory shutdown begins, there is a possibility that the production volume of the recently popular Ioniq 5 will decrease more than expected. It is also reported that the production volume for next month has been decided to be reduced from the original plan due to parts supply issues.

The shortage of automotive semiconductors is a global phenomenon. Last year, when the COVID-19 pandemic broke out and automobile demand decreased, semiconductor companies adjusted production by converting automotive semiconductor production lines into IT device semiconductor lines.

Subsequently, as the spread of COVID-19 slowed and consumption rapidly recovered, it is analyzed that the shortage of automotive semiconductors has recently occurred.

In the case of Hyundai Motor Group, it had relatively more semiconductor inventory compared to other global automakers and had endured without production cuts, but recently, as inventory significantly decreased, it is evaluated that the company has entered the direct impact zone.