Hyundai Motor’s production stops due to semiconductor turmoil… The parts industry also screams
“The national level system semiconductor internalization should be promoted”
Finished cars are waiting at the yard near the export shipping port of Hyundai Motor’s Ulsan factory. Photo = News 1
Hyundai Motor Company due to the semiconductor supply and demand crisis(230,000 -1.71%) The factory is stopping. There is no suitable countermeasure against the global semiconductor shortage.
According to the industry on the 7th, Hyundai Motor Company, which decided to close Ulsan Plant 1 due to a lack of automotive semiconductors, is also considering closing the Asan Plant, which produces Sonata and Granger.
It is highly likely that the Ulsan Plant 3, which produces Avante, will not perform extra work on the 10th. Ulsan Plant 1, which produces Ioniq 5, an electric vehicle exclusively for Konawa, is closed from the 7th to the 14th.
The automaker’s factory has stopped, causing damage to the parts industry as well.
At the Automotive Industry Development Forum on the 6th, Jung Man-gi, chairman of the Automobile Industry Federation, said, “As a result of a survey of 53 auto parts companies, 48.1% of responding companies are reducing production due to a supply and demand problem for automobile semiconductors, and 72% of them have a supply and demand problem until the end of this year It is forecasting,” he said.
According to the survey, 64% of companies cut production within 20% due to semiconductor supply and demand problems, and 36% cut production within 50%.
Market intelligence company IHS Markit predicted that automobile production in the first quarter of this year will decrease by 1 million units due to a shortage of semiconductors, and Nomura Securities in Japan predicted that production in the second quarter will decrease by 1.6 million units.
Consulting company Alix Partners predicted that the global automobile industry will reduce sales by $60.6 billion (about 69 trillion won) this year due to a shortage of semiconductors.
Noh Geun-Chang and Park Chan-ho Hyundai Motor Securities(13,450 +3.07%) Through a recent report, the researcher predicted that the supply shortage of semiconductors for vehicles will be partially resolved from the end of the second quarter. The government also predicts that the supply and demand of semiconductors for vehicles will be balanced in the third or fourth quarter of this year.
However, there is also a concern that the situation will be prolonged. Tom Colefield, CEO of Global Foundries (GF), the world’s third-largest foundry (consigned semiconductor production) company, said through a recent broadcast that the global semiconductor shortage could continue until next year.
In this case, the problem is that there is no suitable countermeasure. Automotive semiconductors are not high-end, high-tech semiconductors, but because stability is important, the process is difficult and it is difficult to increase production easily.
The government and the automobile industry are working hard to secure semiconductors, but the results are not coming out. The shortage of semiconductors for vehicles is a global phenomenon, and it is difficult for suppliers to expand their factories overnight.
The government has negotiated with TSMC as well as the Taiwanese government to secure automotive semiconductors, but it seems that there is no income. Given the supply pressure in the United States, Europe, and Japan, it is very unlikely that they will increase the volume only in Korea.
Accordingly, there is a high voice that a comprehensive national strategy for system semiconductors needs to be rewritten.
Ahn Ki-hyun, executive director of the Korea Semiconductor Industry Association, said, “Now, we must reduce the dependence on imports by creating a system semiconductor ecosystem at the national level and internalizing it in the industries such as automobiles, home appliances, and communication devices that require it.” It should be noted that he said he would do it,” he pointed out.
“There is a situation similar to the competition for securing a corona vaccine,” said Pil-soo Kim, a professor at Daelim University’s automobile department. “In the case of automotive semiconductors, profitability is low, but because the impact on the national industry is so great, we must have our own production capabilities.”
Sesung Oh, reporter of Hankyung.com [email protected]