Recently, the shortage of chip supply has affected the production of automobile manufacturers such as Volkswagen and General Motors. However, according to three people familiar with the matter, Hyundai Motor has not had similar problems so far. The company basically maintained its chip inventory last year and even accelerated its purchases at the end of the year.

Reuters reported that the shortage of chip supply has forced Volkswagen, General Motors and other automakers to reduce production globally, and prompted Germany and the United States to increase efforts to solve related problems.

It is reported that Japan's Toyota Motor said this month that the company's chip inventory is sufficient to maintain four months of production. In addition, Hyundai Motor and its sister company Kia Motors are the only global automakers to maintain an inventory of low-tech chips that help them maintain production.

According to sources, like other automakers, Hyundai Motor also plans to cut production when the COVID-19 epidemic hit last year. However, the company's purchasing department has learned about the trend of cutting automotive chip production in the semiconductor industry and pointed out that if we reduce the purchase of chips, we will encounter trouble in the future.

"Although Hyundai's chip purchases in 2020 are still lower than in 2019, the company has greatly increased its purchases in the fourth quarter of last year." The source added.

Another spokesperson told Reuters that Hyundai is cooperating with other suppliers to maintain stable production. Since the end of last year, the company has diversified suppliers for at least one chip.

Because Hyundai Motor continued to purchase chips from chip manufacturers and global auto parts suppliers such as Bosch and Continental before the chip shortage intensified, they also managed to keep costs down. Kim Jin-woo, an analyst at Korea Investment Securities, said: "This allows Hyundai Motor to obtain automotive chips first, and secondly, to buy chips when the price is lower."

However, two people familiar with Hyundai Motor's procurement situation said that if it is not alleviated as soon as possible, the chip shortage will also have an impact on Hyundai Motor, because the production capacity of the factory floor is tight, and even begin to put pressure on the production of high-tech cars. The source also pointed out that Hyundai's concerns are increasing, and the company is checking inventory more frequently and trying to lock in supply contracts in advance.