Chipmaker TSMC says it can catch up with automaker demand by late June

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TSMC Chairman Mark Liu. (Reuters)

TAIPEI – Taiwan Semiconductor Manufacturing Co Ltd (TSMC) expects to meet the “minimum requirement” of customer demand for automotive chips by the end of June, the chairman told US broadcaster CBS.

Automakers around the world are closing assembly lines due to the industry’s shortage of chips, exacerbated in some cases by the former US government’s actions against Chinese chip factories.

Home to a thriving semiconductor industry, Taiwan is at the center of efforts to solve that problem, and chip makers have vowed to ramp up capacity.

TSMC Chairman Mark Liu said they first heard about the shortages in December and started trying to squeeze out as many chips as possible for automakers the following month.

“Today we think we are two months ahead so that we can meet the minimum requirements of our customers by the end of June,” he said.

When asked if he meant the auto chip shortage would end within two months, he said no.

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“There is a delay. Especially for car chips, the supply chain is long and complex. The supply takes about seven to eight months,” said Liu.

TSMC is the world’s largest contract chip maker.

Although the chip shortage was first felt by car manufacturers, it has since spread to other sectors such as consumer electronics.