Hyundai Motor Halts Operations Again at Ulsan Plant 4 and Asan Plant Due to Semiconductor Supply Shortage

Hyundai Motor Plant 4 Shutdown from 13th to 17th
Asan Plant Also Closed Until 17th... Production Resumes After 26th

Chung Euisun, Senior Vice Chairman of Hyundai Motor Group, was appointed as chairman on the 14th, marking the full-scale launch of the third-generation management system of Hyundai Motor Group. Hyundai Motor Group, including Hyundai Motor and Hyundai Mobis, held an extraordinary board meeting that morning and approved the appointment of the new chairman, Chung. Accordingly, Chairman Chung became the undisputed head of the group just 2 years and 1 month after his promotion to senior vice chairman of the group in September 2018, and 7 months after becoming chairman of Hyundai Motor's board in March this year. The photo shows the Hyundai Motor Group headquarters in Seocho-gu, Seoul on the day. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Ki-min Lee] Hyundai Motor Company has decided to halt operations again at its Ulsan Plant 4, which produces the Palisade and Porter, and the Asan Plant, which manufactures the Grandeur and Sonata, due to the ongoing shortage of automotive semiconductors.

Hyundai announced on the 14th that production lines 41 and 42 at Ulsan Plant 4, which produce the Palisade, Staria, Grand Starex, and Porter, have been shut down for the second consecutive day since the 13th.

Hyundai plans to resume normal production of the Palisade, Staria, and Grand Starex on line 41 starting from the 15th. However, production of the Porter on line 42 will remain suspended until the 17th of this month.

The Asan Plant, which has production lines for the Grandeur and Sonata, will also be closed from the 15th to the 17th. Furthermore, the Asan Plant will continue to halt production until the 26th, including the Chuseok holiday period.

A Hyundai official explained that the shutdowns at the Ulsan and Asan plants are due to a shortage of semiconductors and automotive parts, including electronic control unit (ECU) semiconductors for Theta engines, which are produced in Malaysia.

In Malaysia, where major semiconductor manufacturers worldwide have concentrated production facilities, a nationwide lockdown has been in effect since June due to the spread of COVID-19 variants, causing disruptions in semiconductor production.

Hyundai has been repeatedly suspending operations since April due to semiconductor supply issues and has been adjusting production by significantly reducing weekend overtime work.

Not only Hyundai but also Kia and Korea GM are facing challenging production situations. Kia suspended operations at its Georgia plant in the United States on the 7th, and weekend overtime at major domestic plants has also decreased. Korea GM has reduced production at its Bupyeong Plants 1 and 2 by 50% starting this month.

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