Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

South Korean automakers Hyundai and Kia temporarily halt production in their home country amid a tight supply of semiconductors. Production at Hyundai’s Ulsan and Kia’s Soha plant will be suspended as the wait for chip supply extends further, according to media reports. Kia‘s planned shutdown will begin on May 17, for a day, according to Korean industry sources cited by local media, while Hyundai’s Ulsan plant will be shut down on May 18.


Shutting down of these plants would reflect on the automakers’ capabilities to meet vehicle demand. In April, Hyundai had shut down Ulsan plant 1 and plant 4 owing to a shortage of semiconductors.


The wait for semiconductors has been long for major global carmakers. Semiconductors are critical components used in several features such as power steering, brake sensors and parking cameras. Various reports on semiconductors’ suggest that the shortage is expected to continue until June end. Shortage of these computer chips began towards the end of 2020 due to high demand from the electronics sector after robust recovery from the first wave of COVID-19. 

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