Prospects for prolonged shortage of semiconductors… Production of Ionic 5 is also disrupted

Input 2021.02.28 07:46

Amidst global automakers being hit by a shortage of semiconductors for vehicles, a sense of crisis over production disruptions is rising in Korea as well. GM Korea plans to continue production cuts next month, Hyundai Motor (005380)·Kia Motors (000270)Is a state of mind while operating a production line centered on models with semiconductor stock.

According to industry sources on the 28th, GM Korea plans to operate only half of its Bupyeong 2 plant by mid-next month, and then determine the production plan after reporting the supply and demand of semiconductors for vehicles. GM Korea has been operating 50% of its Bupyeong 2 plant, which produces Chevrolet Malibu and Trax since the 8th. Bupyeong Plant 1 and Changwon Plant are in normal operation.

Previously, General Motors (GM) announced that it would extend production cuts for three assembly plants in North America until at least mid-March due to a lack of automotive semiconductors.

In addition to GM, major global automakers such as Toyota, Volkswagen, Stellaantis, Ford, Renault, Subaru, Nissan, Honda, and Mazda are also experiencing production disruptions. It is reported that Tesla has also stopped production of the model 3, an entry-level sedan, for the last two weeks.

Market information company IHS Markit predicted that automobile production in the first quarter of this year will be delayed by nearly 1 million units due to the recent disruption in the automobile semiconductor supply chain.

It has been found that Hyundai Motors and Kia are also operating their factories in a difficult way as the supply and demand for vehicle semiconductors has prolonged. Although there is no plan to cut production yet, as the sense of crisis over production disruption has risen, the stock of semiconductors for vehicles is checked on a weekly basis, and production lines are being operated mainly on models in stock.

In addition, rather than entrusting only the primary suppliers to secure inventory, they are directly negotiating with semiconductor manufacturers to secure the quantity of semiconductors for vehicles. Hyundai and Kia are Bosch and Continental, Hyundai Mobis (012330)Automotive parts are being supplied from suppliers that have applied semiconductors for vehicles.

An industry official said, “Hyundai Motor and Kia seem to be working hard to prevent disruptions as much as possible while adjusting production plans, such as prioritizing production of popular models with the current inventory.”

In the industry, as the semiconductor supply and demand problem prolongs, there are concerns that there will be a disruption in mass production of the first exclusive electric vehicle’Ioniq 5’that Hyundai Motor Company unveiled on the 23rd. Ioniq 5 set a new record of 23,000 units from the first day of the pre-contract, and has reached its sales target (26,500 units) this year.

An industry official said, “Electric vehicles contain at least 100 more semiconductors than general internal combustion locomotives.”

It is expected from inside and outside the industry that the disruption in the supply and demand of vehicle semiconductors will continue for more than six months until the third quarter of this year. This is because automotive semiconductors are less profitable than other system semiconductors, and it is difficult to increase supply in a short period of time because it is not easy to enter new companies due to the burden of defects, safety accidents, and recalls.

In addition, as major automotive semiconductor companies such as NXP and Infineon stop operating their lines due to the record blackout in the US, the global automotive semiconductor supply and demand situation is expected to worsen.