SEOUL – South Korean company Hyundai Motor Co plans to temporarily halt production at its No.1 Ulsan plant in South Korea due to a chip shortage between April 5 and April 13, Korea reported on Monday. Economic Daily, citing the auto industry.
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The affected Ulsan plant produces 311,000 vehicles per year, including the Kona Electric and Ioniq 5.
“No decision has been taken on the temporary suspension of the facility,” Hyundai said in a statement to Reuters.
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The Korea Economic Daily said production at Hyundai’s No.1 Ulsan plant was on hold due to supply issues for power chips and electrical modules.
Highlighting the severity of the chip shortage crisis, Hyundai, until recently one of the least affected manufacturers due to careful storage, became the latest automaker to halt manufacturing due to the chip shortage .
Hyundai had been able to avoid a shortage hit so far largely because it maintained a stock of chips unlike its global peers, Reuters reported last month.
Last week, Honda Motor Co Ltd and General Motors Co both announced that they would continue to suspend production at factories in North America for weeks to come, citing the chip shortage as one of many. reasons.
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A confluence of factors including factory closures, growing demand for laptops and tablets, and sanctions against Chinese tech companies, caused a global chip shortage that rocked the electronics industry in December.
Initially concentrated in the automotive industry, the shortage has widened to affect a range of consumer electronics, including smartphones.