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The fight against the shortage of auto components will not be complete without sacrifices in other industries
The epic with the desire of the governments of developed countries to protect their automakers from the shortage of semiconductor components begins to threaten to destabilize the already difficult situation in the field of production of microprocessors and microcircuits. In a short time, none of the manufacturers will have time to put new capacities into operation, which means that some of the customers will have to suffer.
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The Nikkei Asian Review explained that Taiwanese semiconductor manufacturers have warned their automotive component customers that the decline in orders during the first three quarters of 2021 will not end well, but they ignored the information. Now that the automotive industry suffers from a shortage of the necessary semiconductor components, it is very difficult to find reserves to increase production volumes.
The Taiwanese authorities, according to the source, held consultations with the four largest manufacturers of specialized products: TSMC, UMC, VIS and PSMC. They make “automotive” semiconductor components for NXP, Infineon, Renesas Electronics, Rohm and STMicroelectronics. Already, many of the production lines of these Taiwanese companies are overloaded. Those who are ready to “push” agreed to increase the level of conveyor loading to 102-103% in the coming months, but it is obvious that this will not solve the problems of automakers.
The production cycle of many components is measured in two to three months, not counting the stage of installation into the finished product and testing. There is currently no way to dramatically increase production volumes, but some Taiwanese companies have promised to negotiate with other customers who may agree to increase the lead time or reduce their volumes. In conditions when contracts already cover the entire first half of the year, it is also very difficult to count on such compliance.
According to representatives of the Taiwanese government, the shortage of semiconductor components is more affecting the production of traditional cars with internal combustion engines, rather than electric vehicles. Last year, the popularity of the latter grew at an impressive pace, while the entire car market as a whole showed a decrease in sales volumes. UMC will somehow try to take into account the interests of both the automotive industry and customers in other areas, although it admits that since the third quarter of last year its capacities have been fully loaded.