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TSMC pledges to focus on automotive chips if it can increase production capacity
25.01.2021 [14:53],
Vladimir Mironenko

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) will prioritize automotive chip manufacturing if it manages to further increase capacity, a spokesman for the Taiwan Ministry of Economy told Reuters. Statement comes amid global component shortages that hinder vehicle production.

REUTERS / Ann Wang

According to the representative of the department, on Sunday the Minister of Economy of the country Wang Mei-hua held a meeting with the leadership of TSMC on this matter. TSMC management told the minister that it will “optimize” the chip production process to make it more efficient and will prioritize the production of automotive chips if it can increase production capacity.

TSMC said that its existing production capacity is 100% used, however, assured the minister that “if production can be increased by optimizing production capacity, it will work with the government to make the production of automotive chips a priority.”.

Earlier, according to Reuters, Germany asked Taiwan to persuade Taiwanese manufacturers to help solve the problem of semiconductor chip shortages in the automotive sector, which is hampering its economic recovery after the COVID-19 pandemic.

Automakers Around the World Suspend Assembly Lines Due to Semiconductor Supply Issues. The deficit affected such car companies as Volkswagen, Ford Motor, Subaru Corp, Toyota Motor Corp, Nissan Motor, Fiat Chrysler Automobiles, etc. d.

In 2021, automotive chips accounted for only 3% of TSMC’s sales, while smartphone chips accounted for 48% of the company’s revenue and 33% of high-performance chips.

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