TSMC to increase key automotive components production by 60% this year to cover chip shortage

Since the second half of 2020, the problem of chip shortage has become the main theme of the semiconductor industry. Today, this problem has had an impact on global automakers, and its root cause is the competition between automakers and the consumer electronics industry for chip supply and many other factors.

At the time of the global chip shortage, TSMC’s plan with leading process technology has also attracted attention. On Friday, TSMC said it had taken “unprecedented actions” to help automakers, which included reallocating production capacity to other industries.

The company said that due to the global chip shortage, the company will increase the production of microcontrollers (MCU), one of the key components of automotive semiconductors in 2021, by 60% from 2020.

Join us on Telegram

Earlier in April this year, the company had stated that the shortage of chip supply is expected to continue until 2022. However, the company seems to intend to maintain its position as the world’s largest foundry manufacturer, and it will spend $100 billion to expand production capacity in the next three years.

In mid-April this year, due to the global chip shortage, TSMC will increase its capital expenditures in 2021 to US$30-31 billion, an increase of 10%-20%.

At the end of April this year, the company would invest US$2.8 billion in mainland China to expand the production of automotive chips. According to reports, the company will build a new production line in Nanjing to increase production capacity by 2023 to meet the growing demand for 28nm automotive chips.

It is reported that TSMC also plans to invest in the construction of a 5-nanometer chip factory in Arizona, USA. The first phase of the project will have a monthly production capacity of 20,000 pieces and will be mass-produced in 2024. Earlier in May of this year, there were reports that TSMC planned to build up to six chip factories in Arizona.


Trending News

To Top