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The market has reported that TSMC has rarely decided to speed up production of key automotive chips to alleviate the chip shortage facing the global auto industry, but it may affect other chip manufacturing operations.
The Nikkei Asian Review cited an anonymous source as a report on the 28th that TSMC decided to produce automotive chips with “super hot runs”, shortening the cycle by as much as 50%. However, TSMC’s already very small Taiwanese factory has to prioritize the production of automotive components, which means that other types of chips may be affected.
The production time of most automotive wafers generally takes at least 40-50 days. TSMC handles super urgent cases and representation time can be shortened to 20-25 days or less. However, most chipmakers will not easily agree to take such action, as it will reduce the efficiency of production equipment, reduce throughput, and increase costs. Customers often have to increase prices to enjoy accelerated production benefits.
Countries like Germany, Japan and the United States hope that Taiwan can try to alleviate the chip shortage in the auto industry. Including Volkswagen, Ford, Nissan Motor and Honda, etc., they have been forced to cut production.
On January 27, Taiwan’s Ministry of Economic Affairs invited major domestic suppliers such as TSMC to discuss solutions in response to the automotive chip shortage. Minister Wang Meihua said delegates at the meeting promised to cooperate with the government’s expectations and work closely with global automotive electronics customers to improve the production efficiency of the production line and increase production capacity, and provide surplus parts to automotive electronic chip customers first.
Japanese media reported on January 22 that global automotive chipmakers such as Renesas and NXP are considering raising prices for many products, increasing from 10% to 20%. Labor commissions increase, along with rising material prices. An official at a large automaker noted that “even if the price is high, guaranteeing the chip is the top priority.
(This article is reprinted with permission from MoneyDJ News; the source of the first image: shutterstock)
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