Hyundai Motor aims to develop chips, cut reliance on chipmakers (updated)

Hyundai Mobis

13/10/2021 18:47

(Add COO quotes)
    By Hyunjoo Jin
    SAN FRANCISCO, Oct 13 (Reuters) - Hyundai Motor's
 005380.KS  global operating officer said on Wednesday the
automaker wants to develop its own chips to reduce reliance on
chipmakers. 
    A global shortage of semiconductors, triggered partly by
surging demand for laptops and other electronic products during
the pandemic, has shuttered some auto production lines globally
this year.  urn:newsml:reuters.com:*:nL4N2LO3SU
    Hyundai temporarily suspended some factories, but the
company’s global chief operating officer Jose Munoz told
reporters the worst has passed for the industry chip shortage,
adding it had the "toughest months" in August and September. 
    "The (chip) industry is reacting very, very fast," he said,
saying Intel  INTC.O  is investing a lot of money to expand
capacity. 
    "But also in our case, we want to be able to develop our own
chips within the group, so we are a little bit less dependent in
a potential situation like this," he said.
    "This takes a lot of investment and time, but this is
something we're working on."     
    He said the company's parts affiliate Hyundai Mobis
 012330.KS  would play a key role in the in-house development
plan. 
    He also said Hyundai Motor aims to deliver vehicles at the
level of its original business plan in the fourth quarter, and
offset some of its production losses next year. 

 (Reporting by Hyunjoo Jin; Editing by Chris Reese and Jan
Harvey)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))