The Korean carmaker is looking at alternative ways to assuage the crippling shortage.
The ongoing semiconductor chip crisis has caused numerous problems for the automotive industry. As a result of the COVID-19 pandemic, automakers have struggled to obtain sufficient stock of the essential chips, leading to production shutdowns at innumerable plants across the world. Elsewhere, manufacturers have had to adapt and build cars without certain features, with carmakers such as Cadillac having to remove certain features from its range.
But some companies have managed the crisis better than others. Hyundai is a good example; the Palisade producer remained relatively trouble-free as competitors struggled through the shortage. But a report from The Elec seems to suggest that Hyundai, despite its great management of the crisis, is still looking for a way out. The company is apparently considering the procurement of home appliance IC controllers in lieu of automotive chips.
The motoring conglomerate has reportedly been carrying out tests to see whether the general-use controllers can be used in place of the automotive versions it currently makes use of since home appliance chips are more widely available.
Vehicle-specific chips are often exposed to more extreme temperatures and bigger shocks, requiring them to comply with loftier safety and durability standards compared to the items used in regular electronics and appliances. However, Hyundai is seeking to use the regular chips for accessory functions and not more important systems. Sources told The Elec that this makes the swap possible.
For example, the chips used to control the front and rear lights aren't obliged to follow the stricter standards, as they don't hinder the driving functions of the vehicle.
Previously, the company's Global Chief Operating Officer, Jose Munoz, said the carmaker is the ideal candidate to produce chips: "Having our industrial power, I think, is a key strategy to try to localize the production of chips. Not this year, because, as you know, this is a big picture that takes quite a lot of time and big investment to increase the production of chips."
The ramped-up initiative to source alternative semiconductor chips is likely due to Hyundai wanting to make a dent in the electric vehicle market. With EVs requiring more chips than combustion-engined cars, gaining a stable supply of the crucial component will allow the company to provide a steady stream of electric vehicles to customers. We certainly hope Hyundai's testing fields positive results, as it will undoubtedly take some pressure off the industry and, in turn, benefit consumers who have been squeezed by high prices and lack of inventory.
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