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The Chip Shortage Will Be Over This Year, Overly Optimistic Hyundai Says

While several important figures in the automotive sector claim the chip shortage is here to stay, Hyundai appears to be a lot more optimistic about the industry’s number one problem right now.
Hyundai believes the chip shortage will end this year 10 photos
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The South Korean company believes the chip crisis would come to an end in the second half of the year after another small struggle in the first quarter of the year.

The problems will continue in the short term (which, according to Hyundai, means just a few more months) due to the global health issue and the continuous push to stockpile chips. But the production of semiconductors will eventually be aligned with the demand, and this is expected to happen in the second half of 2022.

Hyundai says that a more solid recovery will be recorded in the second quarter of the year, while the third quarter will finally bring the chip supply to normal levels.

On the other hand, analysts warn that anything can change overnight, and anticipating the end of the chip shortage isn’t as easy as it sounds.

This is pretty much because of the ongoing health problem that’s still wreaking havoc across the world, with chipmakers still struggling with government restrictions and lockdowns at their main facilities.

On the other hand, Hyundai seems to expect a rapid return to normal on this front as well, so unless another wave hits the world later this year, the entire industry should slowly show signs of recovery.

Market research firm IDC has previously warned that 2023 could bring another problem in terms of chips. Given the massive investments in expanded capacity, the next year could eventually bring an oversupply of chips, meaning that manufacturers could end up making more semiconductors than customers across the world actually need.

However, until this happens, Hyundai appears to be one of the few optimistic companies in the automotive industry, so fingers crossed for this prediction to eventually come true.

 
 
 
 
 

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