In order to ease up the global shortfall of automotive chips, TSMC, the leading semiconductor OEM has noticed panel driver IC clients that production volume will be reduced to make room for automotive chips.
Impacts will emerge from May
Industry sources say the impact will gradually emerge from May.
The sudden traffic caused by surging demands for chips on OEMs had caused a shortage for the automotive chip production, leading car factories to a quagmire and some are forced to cease productions, including Ford, Volkswagen.
Governments and automakers have reached out to the Taiwan government asking for support which has, in turn, pledged to coordinate with domestic suppliers to favor the global automotive industry.
Compressed Driver IC production may induce a price-hike
TSMC pointed out that panel driver IC has a smaller gross margin, but consumes more wafer per unit. TSMC has consequently chosen to reallocate some of the production capacity of panel driver ICs to automotive chips.
Some driver IC clients are said to have received the notice from TSMC.
Panel driver IC providers stated that they will seek to increase volumes from other sources to secure enough chips and minimize the impact. However, this puts even more pressure on the already intense market. Panel driver IC may be given a price-hike as a result.