TSMC wants to shift focus to automotive chip manufacturing

TSMC wants to shift focus to automotive chip manufacturing


MarketBusiness

Anna Savelieva | 01/25/2021

TSMC wants to shift focus to automotive chip manufacturing

Due to the trade war between China and the United States, as well as the coronavirus pandemic, chip shortages have affected many car manufacturers. According to the Taiwan Ministry of Economy, in conditions
a global chip shortage that is hampering automotive production, Taiwan Semiconductor Manufacturing Co (TSMC) will prioritize this segment to help the industry
stand up on feet.

The company said it is optimizing the chip assembly process to make it more efficient. According to her representative, the current capacity is filled to the limit, however, “if production can
will be increased, then TSMC will work with the government to consider the automotive direction as the main one ”. Nevertheless, the ministry is in no hurry to contact the manufacturer and
states that he will wait for specific proposals before making a decision.

Automakers around the world are closing assembly lines due to semiconductor supply problems. The reason for this was actions
the Trump administration, the trade war and the coronavirus pandemic. In addition to American companies, players from other countries also felt a negative impact on themselves. For example, Germany recently made a request to
the government of Taiwan to convince Taiwanese manufacturers to help solve the chip shortage in the auto industry, which is hampering the economic recovery from the pandemic.

Officials note that there is little they can do – basically this segment belongs to the private sector, which means that the government has limited opportunities to influence. “They refused orders for
for various reasons, when demand was low, but now they are ready to increase their production. ”

In 2020, automotive chips accounted for only 3% of TSMC’s sales, 48% behind the smartphone segment and 33% behind high-end chips. Despite the fact that in the fourth quarter
demand jumped by 27% compared to the third, in the overall picture the ratio remained the same.

Recall that the deficit affected Volkswagen, Ford Motor Co, Subaru Corp, Toyota Motor Corp, Nissan Motor Co, Fiat Chrysler Automobiles and other market participants. Ford Kentucky plant failed
to release SUVs Escape due to lack of brake chips. The same fate befell the factory in Germany, which produces the Ford Focus.

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