https://safirsoft.com TSMC chief claims that some companies are sitting in chip warehouses

Why it matters: The past year has seen a gradual decline in the technology supply chain, to the point that constant demand and many other elements have made it virtually impossible for industry players to access supply. Many factors have contributed to this situation, but one that has emerged recently is that some companies are hoarding chips without taking into account the negative effects of this practice on the industry as a whole.

It all started with a shortage of chips, exposing a vulnerability in the global supply chain - a strong dependence on China and its neighbors for a large part of global production capacity for a variety of consumer and industrial products. At one point, manufacturers like Foxconn condemned the situation and called on governments and companies to work together to develop a more resilient supply chain in the face of trade wars and major crises.

However, the situation is much more complicated than the rollout of chips like Samsung and TSMC in all cylinders, but despite a lot of effort, the most optimistic timeline for demand for supply remains 2022-2023. TSMC President Mark Liu told TIME that the company is doing everything it can to serve all of its customers and dismiss allegations that TSMC is prioritizing one customer over another.

https://safirsoft.com TSMC chief claims some companies are sitting in chip depots

Liu says automakers quickly referred to finger cutters for $210. billion this year, but it's hard to say exactly where the problem is. For the first time, automakers cut production and cut orders for their chips in February, but weeks later they've seen increased demand for their cars. At the same time, TSMC redistributed some of its capacity to customers who thought they were out of stock. The complaint is that distributors and brokers are hoarding chips. Contrary to popular belief that TSMC serves Apple more than anyone else, it has in fact had to delay orders for valuable customers who were believed to have the right amount of inventory for their immediate needs in order to reach other customers in need. Slow service. chips to survive.

https://safirsoft.com TSMC chief claims some companies are sitting in chip depots

It is not hard to imagine where this often happens. At one point, Huawei spent billions of dollars building a two-year US chip warehouse to escalate amid China-US trade tensions. Other Chinese companies have followed a similar strategy, but no one knows how many chips they stockpiled last year. What we do know is that China imported a record $35.9 billion in semiconductors in March alone to protect its domestic industry from US sanctions or other sabotage agents. It is in everyone's interest to create the right conditions for the current chaos in the global technology supply chain. TSMC customers sign contracts for chip production in advance, and the current political situation is forcing them to take desperate steps that exacerbate the chip shortage problem. Rising prices for raw materials such as silicon and rare earth metals. If it's low, resolving the persistent chip shortage appears to depend on the ability of foundries like TSMC, Samsung and Intel to increase global production capacity - but governments also play an important role in how the industry moves in the process.

TSMC chief claims that some companies are sitting in chip warehouses
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