TSMC may reduce global chip signal

Auto semiconductor firms say automakers can expect production ramp up in coming weeks -

Taiwan semiconductor manufacturers (TSMC) say automakers can expect significant growth in chip equipment, indicating global scarcity may be past the stage The most complex.

In the first six months of 2021, TSMC increased its production of microcontrollers, one of the most important components used in car electronics, by 30 percent compared to the same period last year, the world's largest contract maker told investors Thursday. Full-year MCU production expected to be 60% higher than it was in 2020.

Read more TMC: How a Taiwanese chipmaker is producing in the global economy

“By doing so, we expect shortages to be reduced in TSMC customers significantly over the next three months,” CC Wei, TSMC Managing Director and Executive said. TSMC's announcement comes after more than nine months of severe chip shortages, crippling global auto production. The crisis began after automakers pulled orders for their chips last fall, leaving them without equipment after weeks of a sharp rise in demand.

Analysts recently presented their insights into the auto chip industry. IHS Markit said in a note in late June that the turmoil is expected to subside in the third quarter. "We expect an improvement during the first or second quarter as the situation is better understood and many efforts are being made to increase visibility in the highly complex supply chain," the article wrote.

"We have evidence of this in some of the quieter announcements that GM will start earlier than planned and Toyota's continued commitment to planning."

"Our recent strategy in mature decades is to work closely with our customers to create customized solutions. We expect this structural demand to continue," said Mark Liu, President of TSMC. "We will focus our investment on expertise. We will not refuse to produce green fields until the demand is justified."

United Microelectronics Corporation, Taiwan's small competitor TSMC, earlier this year, greatly expanded its production capacity to 28 nanometers, one of the most important nodes for the production of automotive chips. TSMC's willingness to reinvest in legacy technologies, a far cry from the past, is part of a broader strategic adjustment. Liu also announced that the company is willing to invest in new factories or other factories in countries other than Taiwan. "Many projects are still being planned," Liu added, adding that the investment in each of these amounts to more than $100 billion in budget capital that TSMC has planned for the next three years. The company said it expanded its manufacturing base in Arizona to more than $12 billion because of TSMC, and it also said it was working hard to make a special semiconductor fabric in Japan, which was previously only devoted to research and development.

As TSMC continues its policy of starting high-tech production in Taiwan and maintaining research and development there, the need for security of semiconductor infrastructure will lead to more diversified production, Liu said. “To maintain and enhance our competitive advantage and better serve our clients in the new non-political environment market.” TSMC reported a net profit of NT$134.4 billion (US$4.8 billion) for the second quarter on Thursday, up 11.2 percent from a year earlier. It expects revenue to rise 21 percent to 23 percent in the third quarter, a slight acceleration from the second quarter.

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TSMC may reduce global chip signal


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