Hyundai Motor chases local chipmakers

Rising demand: Employees inspecting vehicle frames at a Hyundai Motor manufacturing facility in the United States. The company is pursuing plans to localise auto chips to diversify supply chains in South Korea. ― Bloomberg

SEOUL: Hyundai Motor Group is in talks with South Korean chip companies to help it reduce reliance on foreign supplies amid a global shortage that has halted assembly lines at automakers around the world, four people familiar with the matter told Reuters.

Hyundai officials have met with local “fabless” firms – which design chips but outsource manufacturing to the likes of TSMC and Samsung Electronics Co Ltd – as it explores long-term strategies to better diversify its supply chain, according to two people at local fabless firms who met with Hyundai.