TSMC, the world’s largest contract manufacturer of semiconductor products, expects to be able to meet “floor level” demand for automotive chips by the end of June. The chairman of TSMC announced this to the American television company CBS.

Automakers around the world are forced to close assembly lines due to chip shortages, exacerbated by US sanctions against Chinese chip makers.

TSMC cancels bulk discounts for major customers, which could lead to higher prices for final productsTSMC became aware of the deficit in December last year, and already in January the company began to seek reserves in order to ship more products to automakers even in conditions of full capacity utilization.

The head of TSMC clarified that it will not be possible to completely eliminate the shortage of automotive microcircuits in two months. This is due to the time lag inherent in chip manufacturing with its long and complex supply chain.

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