automotive chip shortages
Source: Ministry of Economic Affairs. Minister Wang Mei-Hua.

In face of a global shortage of semiconductors for auto parts, the Taiwan Economic Ministry has held a lunch talk with domestic semiconductor foundries, TSMC, UMC, PSMC and VIS passing on international calls for a boost in auto chip supply.

The four main companies have pledged to prioritize the automotive chip supply.

Steps will be taken to boost auto chip supply

Actions include optimizing the current production line to reach 103% or more manufacturing capacity utilization, the additional utility will be prioritized for auto chips.

Foundries are to talk with current clients to seek possibilities in coordinating for later delivery, or volume reduction to release production capacity for auto chips.

Furthermore, automotive chip clients will be given the highest level of supporting rate.

Previous warnings were given

A decline in auto chip orders happened in the previous two years.

Back then the foundries had warned automotive industries that there will be difficulties to regain the same amount of production in the future, according to the industry-related sources.

The semiconductor is penetrating into all facets of car components as electronics are increasingly embedded in automobiles, which also raises the values of a vehicle.

The automotive industry is strongly hit with various challenges

First, the industry faces transformation, then the pandemic hit, now the semiconductor shortage is forcing major automakers to slash car production, greatly impacting economies that largely rely on the automotive industry such as Germany, where almost 10% of gross domestic product (GDP) comes from carmakers and their suppliers and more than 930,000 people work in jobs related to the auto sector.

Previously, the German Economy Minister, authorities from the US and Japan have reached out to the Taiwanese government for auto-chip supply assistance.

Taiwan Economy Minister Wang Mei-Hua has pledged to support the automotive industry supply chain. However, it is yet unknown whether additional yield would satisfy all stakeholders.