Vehicle semiconductor supply shortage … Request for increased production from Germany, the United States, Japan and Taiwan

The Nippon Geizai Shimbun reported from Taipei, Taiwan on the 25th that the governments of the United States, Germany, and Japan have requested the Taiwanese authorities to cooperate with semiconductors to increase production, as semiconductor supplies, mainly for automobiles, are shortened.

According to one newspaper, a Taiwanese official said: “There is a shortage of semiconductors for automobiles around the world and, since the end of last year, we have been asked (Taiwan to increase the supply of semiconductors) through diplomatic channels.”

The Taiwanese Ministry of Economy, which is responsible for the semiconductor industry, has already requested more production from major semiconductor companies and the Taiwan Semiconductor Manufacturing Corporation (TSMC), which has the highest market share in the global semiconductor consignment production field, or Hualien Electronics. (UMC), the industry’s fourth-largest, called for a rush to expand automotive semiconductor production. In this regard, the head of public relations of TSMC said: “It is the top priority of our company to respond to the demand for automotive semiconductors (which is currently the scarcest in the world).”

Since last year’s crash due to the Corona 19 incident, the semiconductor shortage has become apparent. With the proliferation of remote video work, the power management semiconductors used in personal computers (PCs) became scarce. As the Chinese auto market rebounded, vehicle semiconductors also suffered from a shortage. Furthermore, the semiconductor shortage has worsened as the United States sanctions China’s largest semiconductor consignment manufacturing company, Zhongxin International Semiconductor Manufacturing Corporation (SMIC). The semiconductors produced by SMIC are not high-tech, but are installed in large quantities in cars and household appliances.

Even at the request of each country, semiconductor production is not expected to increase anytime soon. Automotive semiconductors have low profits and if demand decreases, the price can drop quickly, so it is possible to increase investment to increase production and generate losses. A major semiconductor company recently tried to increase semiconductor prices by 10-20% in the auto industry, but the newspaper predicted that the supply shortage will not be resolved anytime soon.

The semiconductor shortage is also affecting the output of global automakers. Volkswagen of Germany has announced production adjustments in China, North America and Europe. Ford of the United States also announced the closure of some plants in North America. Mitsubishi UFJ Morgan Stanley Securities predicted production cuts of about 1.5 million vehicles worldwide from January to June.

Tokyo = Correspondent Kim Cheong-jung [email protected]