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Kia Temporarily Shuts Down U.S. Plant Due to Lack of Semiconductors

The global chip shortage is becoming quite a nightmare for carmakers worldwide, as more and more are struggling to keep their production lines running and find the necessary semiconductors to power their cars.
Kia Telluride is one of the models built in the U.S. 1 photo
After Nissan, Suzuki, and Mitsubishi turned to production adjustments to deal with the lack of chips, Kia is now embracing a similar decision. The company has reportedly decided to suspend the operations at its plant in the United States for two days due to the same reason.

Kia’s production facility in Georgia will therefore shut down on Thursday and Friday, marking the second time this year when the South Korean carmaker turns to such a decision in an attempt to deal with the lack of semiconductors. Kia also idled its U.S. factory for two days last month.

Furthermore, the company temporarily halted the production at its plant in Gwangmyeong, South Korea, earlier this month as well, again waiting for chips to arrive from suppliers.

The American plant is responsible for producing three different Kia models, namely the Sorento, the K5, and the Telluride. And needless to say, just like everybody else, Kia expects an impact on its annual output, as the global chip shortage is unlikely to come to an end too soon.

Industry experts, including executives involved in the tech industry and therefore with direct connection to the largest foundries, have warned that the lack of semiconductors is expected to continue into 2022. Several industries, including the automotive sector, are expected to still struggle finding the necessary chips for approximately one more year.

The good news is that more companies have expressed their interest in stepping into the chip manufacturing business, including Intel and Samsung. Intel, for example, is already working on setting up the production lines, with the company hoping it would begin making chips in approximately nine months.

 
 
 
 
 

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