Hyundai Motor·Kia Submit Semiconductor Data to US Department of Commerce Just Before Deadline (Comprehensive)

US Government Requests Data Amid Vehicle Semiconductor Supply Issues
SK Hynix Emphasizes Memory Supply Stability... "No Production Delays or Bottlenecks"

[Asia Economy reporters Jeong Hyunjin, Lee Gimin, Kwon Haeyoung] Hyundai Motor Company and Kia's U.S. subsidiaries have reportedly submitted semiconductor supply chain-related data requested by the U.S. government. Although Hyundai Motor Group headquarters initially decided not to submit the data after discussions with the South Korean government, the U.S. government requested Hyundai and Kia’s U.S. subsidiaries to also submit data as semiconductor demand companies with production bases in the U.S., leading to the submission of the data just before the deadline. SK Hynix, which complied with the data submission as a semiconductor company, emphasized to the U.S. government that the supply of its main products, memory semiconductors, remains stable.

According to industry sources and the U.S. federal government on the 10th, Kia’s Georgia subsidiary and Hyundai Motor’s Alabama subsidiary provided semiconductor-related information on the 8th (local time) in response to the U.S. Department of Commerce’s request. Kia’s Georgia subsidiary stated in its response that the spread of COVID-19 in Southeast Asian countries such as Malaysia, Vietnam, and the Philippines, where semiconductor manufacturers have production bases, caused disruptions in the supply of Engine Control Units (ECUs), which in turn affected finished vehicle production. Kia added that production was about 8% lower than planned for this year. Besides this, Kia marked all sensitive internal corporate information such as semiconductor supply volume, inventory levels, and customer information as confidential to prevent public disclosure.

Hyundai Motor’s Alabama subsidiary also submitted data to the U.S. government, but the data has not yet been made public. Hyundai and Kia stated that they only submitted information related to production in the U.S. and did not provide data related to other subsidiaries, including those in South Korea. A Hyundai Motor Group official explained, "The U.S. government directly requested Hyundai and Kia’s U.S. subsidiaries to submit the data," adding, "I understand that all data submitted by Hyundai Motor’s Alabama subsidiary has been treated as confidential."

The U.S. government’s direct request for data from Hyundai and Kia is believed to have originated from the semiconductor supply shortage crisis affecting automotive semiconductors. The core U.S. industry of finished vehicle manufacturing has repeatedly faced production disruptions due to semiconductor issues, which served as the basis for conducting this survey. Other automakers such as GM, BMW, and Toyota also submitted data. There remains a possibility that the U.S. government may request additional data after reviewing the confidential submissions.

SK Hynix emphasized in the data submitted to the U.S. government that the supply of its main products, including DRAM and NAND flash memory semiconductors, is stable and that there are no production delays or bottlenecks. In the data submitted on the 8th under the name of Dan Kim, Vice President and Chief Economist of the U.S. subsidiary, SK Hynix explained in response to the current supply chain situation and the U.S. government’s survey that "the memory industry is relatively better able to respond to short-term supply changes compared to other semiconductor sectors," and "currently, memory products are not the cause of the semiconductor shortage."

When asked about lead times related to bottlenecks (the time from order to delivery), SK Hynix responded, "We are currently not experiencing any production delays or bottlenecks," and regarding inventory levels, stated, "There has been no significant change compared to before." They added, "We continuously monitor potential supply bottlenecks," and "This year, we resolved potential supply issues through proactive discussions with customers."

Meanwhile, on the 9th, Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy emphasized during the Korea-U.S. Commerce Ministers’ meeting that "the provision of supply chain data by domestic semiconductor companies should be a one-time occurrence" in relation to the U.S. government’s semiconductor supply chain data request. Minister Moon referred to the smooth submission of semiconductor data by Korean companies by the deadline on the 8th. In response, U.S. Secretary of Commerce Gina Raimondo stated, "This data submission request was an unavoidable measure taken under exceptional circumstances," and assured, "We will strictly manage trade secrets."

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