Taiwan’s TSMC To Prioritize Auto Chips

Taiwan’s biggest chipmaker is stepping up to help the auto industry—as global carmakers have had to stop production because of a chip shortage.

Chipmaking giant, Taiwan Semiconductor Manufacturing Co or TSMC said it will prioritize producing auto chips as demand rises.

Germany asked Taiwan to persuade its chip makers to help ease the shortage–which is obstructing the industry’s recovery from the pandemic.

On Sunday, a Taiwan ministry official spoke to senior executives about the issue. Right now, the chipmaker says production capacity is full. But if it can increase capacity, it will make auto chips a priority.

Global reduction in chip-making has created a chip shortage. This has caused some car production lines to shut down.

The shortage has affected Volkswagen, Ford, Toyota, Subaru, Nissan, Fiat-Chrysler, and others.

Taiwan confirmed they received similar requests from the United States and the EU late last year. And early this year from Germany and Japan.

Last year, auto chips only accounted for 3 percent of TSMC’s production.

The chipmaking industry has always struggled to keep up with sudden demand spikes. The factories cost $10s of billions to build—and it can take up to a year to expand capacity.