Tuesday, January 26th 2021

TSMC to Put Away More Capacity for Automotive Industry if Possible

TSMC is one of the world's biggest semiconductor manufacturers, and the company is currently the leading provider of the newest technologies like 5 nm and 3 nm, along with advanced packaging. So far, TSMC's biggest customers have included Apple, NVIDIA, AMD, etc., where the company has mainly produced chips for mobile phones and PCs/Servers. However, Taiwan's Economics Ministry has announced that they have spoken to TSMC and have reached an agreement that the company will be putting away some additional capacity for the automotive industry, specifically for the production of automotive chips. The reason for this push is the increasing shortage of semiconductors for automakers, experienced due to the Trump administration sanctions against key Chinese chip factories.

TSMC has stated that "Other than continuously maximizing utilization of our existing capacity, Dr. Wei also confirmed in our investors' conference that we are working with customers closely and moving some of their mature nodes to more advanced nodes, where we have a better capacity to support them". The company also states that their capacities are fully utilized for now, however, TSMC has ensured ministry that "if production can be increased by optimizing production capacity, it will cooperate with the government to regard automotive chips as a primary application." That means that TSMC will not decrease any existing capacity, but rather just evaluate any increased capacity for automotive chip production.
Source: Reuters
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18 Comments on TSMC to Put Away More Capacity for Automotive Industry if Possible

#1
Wirko
Next up: people fat because shortage of smart fridges!
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#2
ixi
TSMC swimming in money for the last few months.
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#3
Chomiq
How about US just lifts the stupid sanctions instead. We already know that Beijing doesn't give a flying f... about it and won't change its policies based on economical sanctions alone.
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#4
Vya Domus
Chomiq
How about US just lifts the stupid sanctions instead. We already know that Beijing doesn't give a flying f... about it and won't change its policies based on economical sanctions alone.
The goal wasn't to change their polices, they were just measures meant to hamper their ability to compete.

If you can't win the game make it so your opponent can't play.
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#5
Turmania
Vya Domus
The goal wasn't to change their polices, they were just measures meant to hamper their ability to compete.

If you can't win the game make it so your opponent can't play.
But what if the game field is not fair to competition to begin with? You pay $20 for an hour they pay $1 per hour....and so on...
Posted on Reply
#6
Vya Domus
Turmania
But what if the game field is not fair to competition to begin with? You pay $20 for an hour they pay $1 per hour....and so on...
Weird logic, it's not fair that they can have lower manufacturing costs ? That sucks but even within your country that happens all the time, it's part of the reason some companies remain afloat and some fail.

What would be fair in your opinion that everyone has to be mandated to pay the same amount of money ? Really ?
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#7
ixi
Vya Domus
The goal wasn't to change their polices, they were just measures meant to hamper their ability to compete.

If you can't win the game make it so your opponent can't play.
Damn, didn't think about this from your mention side if point, smart.
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#8
Turmania
Vya Domus
Weird logic, it's not fair that they can have lower manufacturing costs ? That sucks but even within your country that happens all the time, it's part of the reason some companies remain afloat and some fail.

What would be fair in your opinion that everyone has to be mandated to pay the same amount of money ? Really ?
This debate can go on for days, fair would be tax their goods so there is no more disadvantage to your own home nation. As should all, nation loving citizens would adhere to.
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#9
kapone32
Vya Domus
Weird logic, it's not fair that they can have lower manufacturing costs ? That sucks but even within your country that happens all the time, it's part of the reason some companies remain afloat and some fail.

What would be fair in your opinion that everyone has to be mandated to pay the same amount of money ? Really ?
What is the minimum wage in China? Do they have worker's insurance in China? A better question. Do the long haul drivers in China have to even keep logs?
Posted on Reply
#10
1d10t
Turmania
This debate can go on for days, fair would be tax their goods so there is no more disadvantage to your own home nation. As should all, nation loving citizens would adhere to.
..and whose gonna pay for that tax? Some country at southern border? You paid that import tariffs, here's your benefit Following ASUS' Lead, EVGA and ZOTAC Increase NVIDIA RTX 30-series Pricing.
Any implied import tariff will pass down to consumer who bought it, not to a country who produced it. It "beneficial" if you has home grown GPU, but if you don't, then gradually inflation might happen.
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#11
Vya Domus
kapone32
What is the minimum wage in China? Do they have worker's insurance in China? A better question. Do the long haul drivers in China have to even keep logs?
A better question is why is that relevant ? Every country has it's own different minimum wage and different regulations. Even if you wipe China off the face of the Earth manufacturing will simply move to other countries with a cheap workforce.
Turmania
This debate can go on for days, fair would be tax their goods so there is no more disadvantage to your own home nation.
Why ? You do know how much of an oxymoron that is, right ?

Let me get this straight, US companies can make use of cheap workforce from China but then competition from China itself is unfair and should be taxed extra ? You've got to be kidding me, the only entity here being unfair is the US itself for wanting to use borderline slave work and have no competition.

You don't get to simultaneously profit from another country and decide what's "fair" and what's not, what a joke.
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#12
Chomiq
Chinese companies are already moving some of their factories to Vietnam in order to bypass sanctions.
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#13
kapone32
Vya Domus
A better question is why is that relevant ? Every country has it's own different minimum wage and different regulations. Even if you wipe China off the face of the Earth manufacturing will simply move to other countries with a cheap workforce.
If you have been following the American Greed train since we started free trade agreements one would realize that China is the Golden Egg that they were all looking for all along and there is no where left for them to go (but Space). When Free Trade was started Mexico was supposed to be the country and Canada suffered greatly as a result but awareness is key and when the Mexicans realized how disparate the production to sales cost was they formed unions which led to the agreement with China. Today Shanghai has the largest Gantry Cranes ever made. We cannot look at country economics on an individual basis anymore when there are pan trade agreements in place. In the urban area of Canada I live in, a house is not an average of $955,000+ because everyone is making $50 per hour. That is a direct result of free trade as most buyers of all construction are Chinese. Don't get me started on the AIR B&B Methane bombs that are coming either.
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#14
RandallFlagg
Vya Domus
A better question is why is that relevant ? Every country has it's own different minimum wage and different regulations. Even if you wipe China off the face of the Earth manufacturing will simply move to other countries with a cheap workforce.


Why ? You do know how much of an oxymoron that is, right ?

Let me get this straight, US companies can make use of cheap workforce from China but then competition from China itself is unfair and should be taxed extra ? You've got to be kidding me, the only entity here being unfair is the US itself for wanting to use borderline slave work and have no competition.

You don't get to simultaneously profit from another country and decide what's "fair" and what's not, what a joke.
If it were any other country than China with its outsized influence, trade would be banned altogether.

www.democracynow.org/2020/1/9/inside_chinas_push_to_turn_muslim

www.aspi.org.au/report/uyghurs-sale

www.business-humanrights.org/en/latest-news/china-83-major-brands-implicated-in-report-on-forced-labour-of-ethnic-minorities-from-xinjiang-assigned-to-factories-across-provinces-includes-company-responses/
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#15
zlobby
ixi
TSMC swimming in money for the last few months.
Yes, they were really starving before that.
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#16
Vayra86
Vya Domus
You don't get to simultaneously profit from another country and decide what's "fair" and what's not, what a joke.
That is exactly what Western Superiority thinking has been all about ever since the post WW2-era.

It was always a dream and we're now slowly waking up. Slowly. Hopefully in the right way and not the grumpy way because then we start shooting.
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#17
Unter_Dog
I can attest the automotive supply chain is a disaster for electronics. When this happens electronics makers will pay almost anything to keep lines up.
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#18
Caring1
Vya Domus
The goal wasn't to change their polices, they were just measures meant to hamper their ability to compete.

If you can't win the game make it so your opponent can't play.
Lol, that's one way to spin it, reality is people will still buy the product, the Chinese continue winning, and the tax man wins, the only loser is the consumer.
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