Jung-hee Kim

Global Economic News

SOUTH KOREAN carmakers are having a rough time as the global automobile chip shortage continues.

Hyundai Motor suspended the production of its popular models as the lockdown has continued due to the spread of COVID-19 Delta variants in Southeast Asia, including Malaysia.

Hyunda’s Asan plant, which produces Sonata and Grandeur, was shut down yesterday due to the chip shortage. The production is expected to be resumed next week.

Previously, Hyundai halted the production of its Asan plant last Thursday and Friday. It resumed the production this week but eventually closed the plant again only two days later.

Hyundai’s production suspension came as outbreaks of the Delta coronavirus variant in many Southeast Asian countries have led to shutdowns at various chip plants in the region. In recent years, Malaysia has emerged as a major center for chip testing and packaging, with Infineon Technologies AG, NXP Semiconductors NV and STMicroelectronics NV among the key suppliers operating plants there.