Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which commands more than half of the global foundry market, yesterday said it is taking “unprecedented actions” to boost supply of microcontroller units (MCU) by 60 percent this year to mitigate a severe automotive chip crunch.
The Hsinchu-based chipmaker’s remarks came after the US Department of Commerce wrapped up a second round of meetings with global semiconductor makers and buyers on Thursday in the latest efforts to solve an auto chip supply bottleneck.
“To support the global automotive industry, TSMC has taken unprecedented actions, including reallocating capacity from customers from other industries that are under pressure from high demand due to the acceleration of digital transformation,” the company said in an e-mailed statement.
“TSMC would increase 2021 output for MCUs, one of the key components in automotive semiconductor products, by 60 percent from the 2020 level, representing a 30 percent increase over the 2019 pre-pandemic level in this critical product category,” the statement said.
TSMC is the world’s biggest supplier of MCUs for vehicles, with a more than 60 percent share, tallies from the Market Intelligence and Consulting Institute (資策會) showed.
Automakers should adjust their long-standing just-in-time inventory management strategy to minimize risks of a supply-demand imbalance, MIC said.
While promising to work with companies in the auto supply chain, TSMC said that modernizing the just-in-time supply chain management system and increasing demand visibility is the path to avoiding a recurrence of the current shortage.
TSMC chief executive officer C.C. Wei (魏哲家) last month told investors that the company expects to see a sharp improvement in the auto chip shortage as it boosts production.
At the time, he said the auto supply chain is long and complex with its own inventory management practices.
From chip production to vehicle production takes at least six months, with several tiers of suppliers in between, he said.
‘FINGERPRINTING’: The ‘private relay’ feature hides a user’s IP address by rerouting the Web connection through a third party, making it impossible to infer their identity Apple Inc on Monday said a new “private relay” feature designed to obscure a user’s Web browsing behavior from Internet service providers and advertisers would not be available in China for regulatory reasons. The feature was one of a number of privacy protections Apple announced at its annual software developer conference on Monday, the latest in a years-long effort by the company to cut down on the tracking of its users by advertisers and other third parties. Apple’s decision to withhold the feature in China is the latest in a string of compromises the company has made on privacy in a country
Apple Inc has hired Ulrich Kranz, a former senior executive at BMW AG’s electric vehicle (EV) division, to help lead its own vehicle efforts, people familiar with the situation said. The tech giant hired Kranz in recent weeks, about a month after he stepped down as CEO of Canoo Inc, a developer of self-driving EVs. Before cofounding Canoo, Kranz was senior vice president of the group that developed the i3 and i8 cars at BMW, where he worked for 30 years. Kranz is one of Apple’s most significant automotive hires, a clear sign that the iPhone maker is determined to build a
PLEDGE: The contract chipmaker said it would issue at least NT$2.5 a share each quarter and no less than NT$10 per share for the whole of this year Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday raised its proposed cash dividend for last quarter to NT$2.75 per share from NT$2.5 a year earlier, given the company’s increased earnings. That represents a payout ratio of about 51 percent based on its earnings per share of NT$5.39 in the first three months of this year. TSMC said that its board of directors approved the cash dividend distribution yesterday. The Hsinchu-based chipmaker reassured its investors that it intends to maintain a stable and sustainable dividend policy. The company said that it would issue at least NT$2.5 a share
TIMELY RAIN: Before the arrival of the seasonal plum rains late last month, the nation had gone almost a year without significant rainfall in catchment areas Timely plum rains have significantly alleviated a historic water shortage in Taiwan, allowing water restriction measures to be lifted in some areas, while the hardest-hit areas remain on alert, the Ministry of Economic Affairs (MOEA) said yesterday. “Thanks to Tropical Storm Choi-Wan, the sustained plum rains and continued water resource management efforts, the water situation in Taiwan has been greatly alleviated,” Minister of Economic Affairs Wang Mei-hua (王美華) told an online news conference. More than 100mm of rain has fallen in the catchment areas of the reservoirs in Miaoli and Taichung counties over the past few days, Water Resources Agency data