TSMC Expects Auto Chip Shortage to Slow This Quarter

As the world’s semiconductor shortage continues to forward, the world’s biggest contract semiconductor manufacturer said the end of the shortage could be within reach.

Taiwan Semiconductor Manufacturing Company (TSMC) estimates the ongoing semiconductor shortage will begin to lighten up over the next several months, according to The Wall Street Journal.

The manufacturer is the world’s largest contract chipmaker, and they are reportedly on track to raise microcontroller production output for cars by at least 60 percent in comparison with last year.

On a broad level, however, Chief Executive C.C. Wei said in an earnings call Wednesday that the broader semiconductor shortage may continue until 2022.

China’s NIO Sees EV Production Hit By Global Chip Shortage https://t.co/AoRirB1P25

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TSMC Chairman Mark Liu addressed geopolitical risks as a potential issue to future semiconductor supply, emphasizing that Taiwan is unlikely to be affected due to its significance to the world’s supply chain.

In reference to the Taiwan semiconductor market amidst the ongoing shortage, Liu said, “No one wants to disrupt it.”

According to reports earlier this week, Apple could be looking at Taiwan for its electric vehicle (EV) batteries, with both Foxconn and Advanced Lithium Electrochemistry (Aleees) looking to construct U.S. production facilities – a prerequisite that Apple is requiring.

Taiwan component manufacturer Pegatron is also looking to build a U.S. factory for supplying EV parts, though to Tesla instead of Apple.