Hyundai turns to local companies to get chips so we can differentiate the chain | Traffic Companies News

Hyundai Motor Group is in talks with armaments manufacturers in South Korea to help reduce reliance on foreign aid during a global crisis that has halted international conventions, four experts told Reuters.

Hyundai officials have met with local “non-textile” companies – which manufacture chips but manufacture equipment manufactured by TSMC and Samsung Electronics Co Ltd – as it explores long-term ways to improve its sales, according to two non-textile companies that met with Hyundai.

The South Korean automotive industry wants to change some of its operating systems such as microcontroller units (MCUs) for South Korean manufacturers, but expertise still remains with leaders of companies such as Dutch arms dealers NXP Semiconductors and Japan’s Renesas Electronics Corp, according to individuals.

“In addition to looking at barriers to entry into the automotive market, long-distance and experimental methods make it difficult for small companies to make their own chips … one year of making and manufacturing home-made electronic chips,” said a person at a South African textile company. Korea said.

“The company wants to upgrade” automotive equipment to help find a way to supply weapons in South Korea in the event of a crisis, which is caused by those living abroad, “said a member of Hyundai’s brothers’ company, Kia.

The South Korean car repair company consists of Hyundai Motor Co and Kia Corp.

Hard stuff

Hyundai has performed better than its global competitors in the first round, thanks to its efforts to secure team equipment in anticipation of delivery.

But the scarcity, growing and more and more factors including fires at a chip factory in Japan and hurricanes in Texas, are approaching Hyundai.

The company has suspended production in its South Korean factories and production in the United States due to a lack of chip.

All sources spoke on condition of anonymity because the conversation was confidential.

Hyundai Motor Group declined to comment.

Hyundai Mobis, a member of the group, told Reuters: “No negotiations are underway with the relevant companies, and although we think it is important to review chip development over time, there is currently no detailed guidance or specific solution.”

Local companies

In a search for ways to protect chip designs from non-textile companies, Hyundai has also asked chip manufacturers, known as the developers, to discuss production plans, a source familiar with the matter told Reuters.

“Hyundai offered its offer of chips at home, but we haven’t mentioned anything yet … when it comes to developing our production capacity, we need to make money,” said a former South Korean founder. .

“Hyundai seems to believe that there could be enough demand for even the strongest vehicles even if these are soon missing,” he added.

Global chip demand is expected until the second quarter of 2022, according to research firm Gartner.

The researchers said businesses are reluctant to expand their design capabilities to other customers because it can take years to recover money on equipment and sell cash, and demand may change rapidly.

“Our chips may not be smaller Hyundai chips or replacements that have been used before, but ours may be Hyundai’s response in the short term or the failure to supply external chains,” said a senior company official.