Taiwan Chip Manufacturers To Prioritize Production for Auto Industry

Kimberly Redmond  |

Video source: YouTube, Formosa TV English News

Taiwan’s leading chip manufacturers promised to do their best to tackle a semiconductor shortage that is crippling the global automotive industry, according to multiple reports.

Executives from Taiwan Semiconductor Manufacturing, United Microelectronics, Powerchip Semiconductor Manufacturing and Vanguard International Semiconductor told Taiwanese officials they will prioritize auto chip production if they can further increase manufacturing capacity, Reuters reported.

“Chipmakers are willing to follow the government’s request and try to support auto chips as much as they can to support production in the U.S., Europe and Japan,” Economic Affairs Minister Wang Mei-hua told the outlet.

Many production lines are already running at full capacity, however, as the COVID-19 pandemic and shift to remote work have driven demand for laptops, smartphones and servers. It’s also led to shortages of items such as processors, sensor chips, display panels and driver-integrated circuit chips.

The shortage has affected major automakers around the world, including Volkswagen, Subaru, Toyota Motor, Nissan and Ford Motor and caused some assembly lines to shut down due to delays in the delivery of semiconductors. 

The problem, CNBC reported, was only exacerbated by former President Donald Trump’s actions against key Chinese chip factories.

In response to requests from government leaders and car makers in the United States, the European Union, Germany and Japan for help addressing the shortage, Taiwanese officials set up meetings with the country’s four largest contract chipmakers.

Following talks, manufacturers said they are prepared to negotiate with clients who purchase other products to see if any are willing to delay or cut orders so that the production lines can focus on auto chips. Reuters says companies will also try to boost production.

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Source: Equities News

 

 

 

 

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