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TSMC signals global chip crunch may be easing

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July 15, 2021
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Enlarge / TSMC’s headquarters, seen here, are in Hsinchu, Taiwan. (credit: Sam Yeh via Getty Images)

Carmakers can expect a sharp upturn in chip supplies in the coming weeks, Taiwan Semiconductor Manufacturing Company (TSMC) said, signaling that a global shortage may have moved past its most crippling stage.

In the first six months of 2021, TSMC increased its output of micro-controlling units, an important component used for car electronics, by 30 per cent compared with the same period last year, the world’s largest contract chipmaker told investors on an earnings call on Thursday. MCU production is expected to be 60 per cent higher for the full year than in 2020, it added.

“By taking such actions, we expect the shortage to be greatly reduced for TSMC customers starting this quarter,” said CC Wei, TSMC’s chief executive.

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