Taiwanese semiconductor chip producers will prioritize the auto business amid an ongoing international microchip scarcity.
Taiwan’s financial minister, Wang Mei-hua, met with executives of semiconductor chip producers this week to debate methods for addressing the continued scarcity, which has compelled a number of main automakers to halt manufacturing of sure automobiles. The chip makers stated they’ll prioritize their auto business companions earlier than others to assist get car manufacturing again up and operating and can attain out to these patrons to see in the event that they delay the manufacturing of sure merchandise.
“Chipmakers are keen to comply with the federal government’s request and attempt to assist auto chips as a lot as they’ll to assist manufacturing within the U.S., Europe and Japan,” Wang Mei-hua instructed Reuters.
“For instance, if their capability is at 100% now, they may attempt to elevate it to 102% or 103%, with the additional capability going to make auto chips,” she added.
Mei-hua met with executives from a number of semiconductor chip makers, together with Taiwan Semiconductor Manufacturing Co Ltd (TSMC), United Microelectronics Corp (UMC), Powerchip Semiconductor Manufacturing Corp and Vanguard Worldwide Semiconductor Corp.
Microchips are in excessive demand within the auto business, as at the moment’s technologically superior automobiles use an abundance of various microchips for all the things from engine software program to electrically operated seats. The issue was exacerbated by the COVID-19 pandemic, which compelled many automakers to shut vegetation early final yr earlier than a sudden surge in car demand put them in competitors for microchips with the buyer electronics business.
The COVID-19 pandemic has additionally compelled many workers to start working from residence, creating extra demand for laptops, tablets and different associated electronics, squeezing the semiconductor market even additional.
“This seems to be long-term demand so it should take a while to resolve the issue,” Mei-hua acknowledged.
Whereas Common Motors has not but needed to pause a manufacturing line on account of semiconductor shortages, it needed to take away two choices from the Chevy Tahoe and Suburban and GMC Yukon and Yukon XL because of the state of affairs, GM Authority completely reported this month. Rival producers like Ford, Fiat Chrysler, Subaru and Nissan have all been compelled to pause manufacturing of sure automobiles because of the scarcity.
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— Sam McEachern
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