Taiwan's TSMC vows to prioritize auto chip production amid global shortage

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) vowed to increase auto chip production capacity and make the process more efficient, amid a global shortage that has hampered car production.

According to TSMC, its current production capacity is full but had assured that it will cooperate with the government of Taiwan to regard automotive chips as a primary application.

TSMC added that it is moving some of its customers' mature nodes to more advanced nodes, where they have a better capacity to support.

German Economy Minister Peter Altmaier has asked Taiwan's Economy Minister Wang Mei-hua to persuade Taiwanese manufacturers to help solve the shortage of auto semiconductor chip, which is hampering its recovery from the pandemic.

The shortage has affected Volkswagen, Ford Motor Co, Subaru Corp, Toyota Motor Corp, Nissan Motor Co Ltd, Fiat Chrysler Automobiles, and other carmakers.

Taiwan's Economic Ministry had also received requests from both the US and the EU through “diplomatic channels” late last year, as well as from Japan this year.

A senior official at Japan’s Ministry of Economy, Trade, and Industry revealed that Japan’s auto manufacturers’ association was already in touch with TSMC.

Taiwan's ministry has also reached out to Japan’s de facto embassy in Taipei for their support in those talks.

A senior Taiwan government official noted that with the matter being mainly a private-sector exchange, governments are limited on what they can do.

In the fourth quarter, sales for TSMC’s auto chips soared 27 percent from the previous quarter, but only accounted for 3 percent of quarterly sales.