Hyundai To Suspend One More Plant In S. Korea Amid Semiconductor Shortage - Reports

MOSCOW (Pakistan Point News / Sputnik - 09th April, 2021) Hyundai Motor Company said on Friday it would temporarily suspend one more domestic plant next week due to a global shortage of semiconductors, media reported.

According to the South Korean Yonhap news agency, the operation of the Asan plant, 62 miles south of Seoul, which produces the Grandeur and Sonata sedans, will be halted from Monday to Tuesday.

On March 30, the car maker announced the suspension of production at its No. 1 factory in Ulsan that produces the IQNIQ 5 all-electric vehicle and Kona subcompact SUVs from April 7 to 14. The week-long suspension of the plant will result in the decrease of production of Kona and IQNIQ 5 vehicles by 6,000 and 6,500 units, respectively.

The media outlet said that Hyundai also reduced overtime work at No. 3 plant in Ulsan over problems with supply of parts.

The news comes weeks after a fire broke out at Japanese chipmaking giant Renesas Electronics damaging 23 machine lines. Renesas Electronics CEO Hidetoshi Shibata said last week that the production of electronic products was expected to recover in three to four months.

Renesas Electronics' share in global chip production is nearly 20 percent. Their microcomputers are used in cars and consumer electronics, where demand has recently been on the rise due to a variety of factors, including the return to pre-pandemic production.