Hyundai Motor to suspend South Korea production over chip shortage

South Korean automaker Hyundai Motor said on Tuesday it would suspend production at its Ulsan No.1 plant in South Korea from April 7-14 due to a shortage of semiconductor chips and supply issues with electrical parts.

The automaker said there were supply problems with semiconductor parts for the front view camera system of its Kona sport utility vehicle (SUV) and power electric modules for the IONIQ 5.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as carmakers, which closed plants for two months during the COVID-19 pandemic last year, rival against the sprawling consumer electronics industry for chip supplies.