Automakers Around the World Close Assembly Lines Due to Semiconductor Supply Issues
Automakers face chip shortages, and TSMC pledges to prioritize these products
Although the largest contract chip manufacturer is fully utilized, there is a chance to improve performance through optimization. TSMC management promised the government that priority would be given to the automotive industry’s products if it succeeds.
Germany recently asked Taiwan to convince local manufacturers to help address the chip shortage in the automotive sector, hampering its economic recovery from the COVID-19 pandemic. The ministry said similar requests have already been received through “diplomatic channels” from other European Union and the United States and Japan.
Automakers all over the world are closing assembly lines due to semiconductor supply issues. The shortage affected Volkswagen, Ford Motor, Subaru, Toyota Motor, Nissan Motor, Fiat Chrysler Automobiles, and other car manufacturers. Having reduced orders for chips when demand for machines was low amid the pandemic can no longer ramp up production. The situation was exacerbated by the actions of the Trump administration against key Chinese chip manufacturers.
Note that in 2020, automotive chips made up only 3% of TSMC’s sales, while, say, smartphones’ chips – 48%.
