Korean carmaker Hyundai plans to close its Montgomery, Alabama facility for three weeks, starting today, due to a shortage of semiconductor chips.
According to media reports, the closure will also coincide with the plant’s maintenance schedule and repairs will be conducted during this time. While the company has not disclosed the impact on output, it is capable of producing 400,000 cars and 700,000 engines per year.
The semiconductor shortage continues to impact the global automotive industry, especially the US production sites, which have largely cut output due to this. However, TSMC, one of the largest producers stated in late May that it expects to partially restore supply by the end of June.
Secondary aluminum and zinc smelters have also taken their cue from the auto industry to start planning maintenance shutdowns and are now burning through inventory to avoid warehousing costs. Most smelters are banking on chips being in reasonable supply by Q4 2021, when they expect the secondary ingot market to boom.