TSMC said that the company is making addressing the chip supply challenges affecting the automotive industry a top priority, and through its fab ” Accelerate” the production of these products.
“TSMC is currently ramping up production of these critical automotive products through our fabs,” TSMC said in a statement. “TSMC is reconfiguring our wafers at a time when our capacity is being fully utilized to meet demand in various fields. capacity to support the global automotive industry.”
Previously, the US-based Bernstein Research predicted that a global shortage of automotive chips in 2021 will result in a loss of as many as 4.5 million vehicles, equivalent to nearly 5% of the world’s annual vehicle production.
Inverto, a think tank owned by Boston Consulting Group, also predicts that the impact of the shortage of automotive chips on the automotive industry will continue for half a year or even three quarters.
The forecast was also confirmed by Continental, the world’s second-largest parts and components company. Continental said in an announcement a few days ago that “the bottleneck of semiconductor production capacity may continue throughout 2021. Continental has worked overnight on this at the board level and requested (complete vehicle companies) to adjust production plans or product mixes in a timely manner.” The Bosch Group, the world’s largest component company, acknowledged that it was also affected by the chip shortage, but declined to give more details.
Medium-sized suppliers such as HELLA Electronics are also not immune. Rolf Breidenbach, CEO of HELLA Electronics, said frankly at the semi-annual report conference a week ago: “HELLA is currently using the Stop and Go production rhythm to deal with the chip crisis.”
If chip foundries such as TSMC can increase the production capacity of automotive chips and increase the supply of automotive chips, perhaps the loss of the automotive industry will not be so serious.
In addition, there is also news that recently, chip foundries such as TSMC are rumored to be considering further raising the price of automotive chips. It is rumored that Advanced Integrated Circuits (VIS), a subsidiary of TSMC’s automotive chip, is considering a price increase of up to 15%.
If the price hike finally comes to fruition, it will be the second round of price hikes since last fall. In the last round of price hikes, some chip foundries have raised prices by about 10-15% in response to additional orders from automakers to boost production.