TAIPEI — Taiwan Semiconductor Manufacturing Co. (TSMC) is “expediting” auto-related merchandise and reallocating capability, the corporate mentioned on Thursday, amid a world scarcity of auto chips.
Automakers world wide are shutting meeting strains because of the shortages, which in some circumstances have been exacerbated by the previous U.S. administration’s actions in opposition to Chinese language chip factories.
The scarcity has affected automakers together with Volkswagen Group, Ford, Subaru, Toyota, Nissan and Stellantis.
Taiwan’s economy minister said on Wednesday main Taiwanese chipmakers had been prepared to prioritize provides for automakers, after she met senior firm executives together with from TSMC.
In an announcement, TSMC mentioned it was addressing the chip provide “challenges” as their high precedence.
“The automotive provide chain is lengthy and sophisticated, and we’ve labored with our automotive prospects and recognized their important wants,” the world’s largest contract chipmaker mentioned.
“TSMC is presently expediting these important automotive merchandise by means of our wafer fabs. Whereas our capability is totally utilized with demand from each sector, TSMC is reallocating our wafer capability to assist the worldwide automotive business.”
In 2020, auto chips accounted just for 3 p.c of TSMC’s gross sales, lagging smartphones’ 48 p.c and 33 p.c for high-performance chips.
Within the fourth quarter, gross sales for TSMC’s auto chips jumped 27 p.c from the earlier quarter, however nonetheless solely accounted for 3 p.c of general gross sales.
The problem has turn out to be a diplomatic one, with German Financial system Minister Peter Altmaier writing to his Taiwanese counterpart Wang Mei-hua to ask her for assist in addressing it.
Wang mentioned the opposite corporations whose executives she met had been from United Microelectronics, Powerchip Semiconductor Manufacturing and Vanguard Worldwide Semiconductor.
United Microelectronics Co-President Jason Wang, talking on an investor name late Wednesday, mentioned their fabs had been additionally working at a one hundred pc utilization fee and that they had been attempting to handle the auto chip scarcity.
“It is exhausting to extend the capability. It is extra about re-prioritizing. Prioritizing the automotive market, so hopefully we will relieve a few of the stress,” he mentioned.
“A number of the capability improve will come from productiveness enchancment and for these the precedence will most likely be allotted to automotive on the present time.”
United Microelectronics Chief Monetary Officer Chitung Liu added that the corporate’s dedication to their non-auto prospects “is not going to change.”
The provider doesn’t break down particulars for auto chips when it comes to how a lot they contribute to income or their share of manufacturing.
The corporate declined to touch upon the assembly with minister Wang.
Taipei-based analysis group TrendForce mentioned in a analysis word this week that built-in chips for auto use have to be extremely dependable and have a protracted lifespan as they’re typically utilized in high-temperature and high-pressure working environments.
“So it’s often not simple to modify over manufacturing strains and provide chains,” it mentioned.