TSMC expects auto industry chip shortage to subside in the coming months

[Shawn Knight]

In a nutshell: Taiwan Semiconductor Manufacturing Company (TSMC) earlier this year cranked up its investment engine in order to expand operations and expedite upgrades in response to the ongoing global chip shortage. Based on remarks made during a recent earnings call, it seems as though the infusion of cash will start to pay a return before the end of the year.

TSMC CEO C. C. Wei said during the aforementioned earnings call that his company is on track to boost output of chips used in vehicles by 60 percent this year compared to 2020. There was also talk of TSMC building a new facility in Japan, we’re told.

Unfortunately, the semiconductor industry at large is likely to see shortages extend into 2022, Wei added.

The auto industry has been hit especially hard by the ongoing chip shortage, with manufacturers like Ford, Chevy and Jeep having to cancel production of thousands of vehicles this year. But as Car and Driver highlighted last month, it’s partially their own fault for canceling orders during the early days of the Covid-19 pandemic. Customers in other industries took advantage of this freed up capacity, leaving little production capacity for the auto industry.

TSMC, meanwhile, is no doubt singing all the way to the bank. The company said revenue increased 20 percent in the second quarter compared to the same period a year earlier, while net profit jumped 11 percent.

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https://www.techspot.com/news/90438-tsmc-expects-auto-industry-chip-shortage-subside-coming.html

 

[Bulllee]

Seems like no one mentions the drought and awful water shortage in Taiwan.
Hope it rains chips.

 

[Watzupken]

Is it because of increase supply from fab or a combination of demand tapering off (with the latter being the main contributor? There may be a sudden surge in demand at one point, which will eventually slow down or go back to normality. I somehow believe with all these huge investments made by all the big fabs, there will likely be an oversupply at some point. My understanding is that fabs generally cannot immediately increase production over a short term. Since the shortage started late Q1 or in Q2 last year, its been more than a year which make sense production may have improved. But more than a year later, is the demand still so strong, or just chip companies/ PC OEMs/ auto makers being overly optimistic about demand?

 

[Theinsanegamer]

Ah yes, the "Shortages" shall continue. Always leaving that excuse to raise prices later on.

Hopefully TSMC is ready for the asset bubble that is getting ready to pop in the US and the slump of demand it will cause.

Seems like no one mentions the drought and awful water shortage in Taiwan.
Hope it rains chips.

Taiwan is just one of many locations that house TSMC plants.

 

[Gomos]

Taiwan is just one of many locations that house TSMC plants.

If 3 is many... There is one in China, one in US, and all the rest are in Taiwan.

TSMC Fabs - Taiwan Semiconductor Manufacturing Company Limited

Annual capacity of the manufacturing facilities managed by TSMC and its subsidiaries exceeded 12 million 12-inch equivalent wafers in 2019. These facilities include four 12-inch wafer GIGAFAB® fabs, four 8-inch wafer fabs, and one 6-inch wafer fab – all in Taiwan – as well as one 12-inch wafer...

www.tsmc.com

 

[Cubi Dorf]

This is good news. I think people are now understand how important chip are in world today