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Auto Microchip Shortage to Ease By Late June

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If you've been following the auto industry at all over the past few months, you know that automakers are facing a microchip crisis. Basically, they're not getting as many of the semi-conductors as they need and delays are starting to affect production. Dealers' inventories, meanwhile, are not being replenished at the rate they would like.

Already, some manufacturers have had to shut down some plants or reduce the pace of production.

For their part, semiconductor manufacturers are scrambling to meet demand. In an interview on CBS's 60 Minutes Sunday evening, TSMC (Taiwan Semiconductor Manufacturing Co) President Mark Liu said his company should be able to catch up with the "minimum required" customer demand for automotive chips by the end of June.

Logo TSMC
Photo: TSMC
Logo TSMC

Taiwan, home to a booming semiconductor industry, is at the centre of efforts to address the problem, and its chipmakers have promised to increase capacity.

Mark Liu also said his community first heard about the shortages in December and the following month began trying to produce as many chips as possible for manufacturers.

“Today, we think we are two months ahead, that we can catch up the minimum requirement of our customers, before the end of June”, he said. However, when asked if that means the chip shortage will end in two months, he said no. “There's a time lag. In car chips particularly, the supply chain is long and complex. The supply takes about seven to eight months.”

Realistically, then, we can expect the situation to be resolved by the end of the year or early in 2022.

TSMC is the world's largest chipmaker.