Prolonged Semiconductor Supply Shortage... Ongoing Shipment Crisis

Delta Variant Hits Southeast Asia... Semiconductor Shortage Continues

[Asia Economy Reporter Yoo Je-hoon] The global semiconductor supply shortage, which is severely impacting the global automobile market, continues to cause new car delivery delays in South Korea.

According to industry sources on the 4th, popular models from Hyundai Motor and Kia currently require at least 6 months and up to more than 11 months for vehicle delivery as of early this month. For Hyundai, the Santa Fe Hybrid takes over 6 months, while the Kona Hybrid and Porter standard and Super Cab models require about 6 to 7 months.

For Kia, the Sportage gasoline and hybrid models take 7 to 9 months, and the K8 Hybrid requires more than 8 months. The Carnival requires 6 to 7 months or more depending on the model, and the Sorento HEV has a waiting period of over 11 months. Dedicated electric vehicle models like the EV6 are only expected to be produced next year.

In the first half of this year, major automakers including Hyundai and Kia had expressed optimistic forecasts that the semiconductor supply shortage might ease somewhat in the second half. However, the spread of the COVID-19 Delta variant severely hit Southeast Asia, where major automotive semiconductor factories are concentrated, and the semiconductor shortage shows no signs of resolution. In fact, the engine control unit (ECU), currently the most severely affected in supply, is mainly sourced from Malaysia, where the Delta variant spread is severe.

The delivery crisis is not just a domestic issue. As of August, Hyundai’s inventory days in the U.S. market stood at only 19 days, which is difficult to compare with the usual 2 to 3 months of inventory days.

The industry expects the semiconductor shortage to continue for at least 2 to 3 years, and with the introduction of new technologies such as autonomous driving and connected cars, demand for related semiconductors is expected to increase further.

An industry official said, "Global automakers have started electrification and are rapidly applying new technologies such as autonomous driving and connected cars that require more semiconductors," adding, "The semiconductor supply shortage could worsen further over the coming years."

This content was produced with the assistance of AI translation services.