Global Chip Shortage: Taiwan Says It Sees ‘Balance’ In Automotive Chip Supplies In Q4

Global supply and demand for automotive chips is expected to “balance” in the fourth quarter of 2021, Taiwan’s government said on Saturday, reiterating its commitment to do its part to address the shortage that has shut down production lines around the world. .

Democratic US senators from Michigan and Ohio this week asked the Taiwanese government to help resolve the shortage, as the island is a major semiconductor producer and considered central to efforts to resolve the problem.

Responding to the letter, Taiwan’s Ministry of Economy noted that the island’s chip makers were not the main suppliers of foreign embedded device makers that make automotive chips.

“But the relevant chip makers are fully cooperating with customers around the world, responding positively to their related needs and helping to solve the automotive chip problem,” the document said.

Economy Minister Wang Mei-hua was personally involved in talks with Taiwanese chip makers, who told her they had been “actively resolving” the issue in the first half of this year and will continue to do so, the ministry added. .

“Although the automotive chip industry chain is long and complex, with the full cooperation of our country’s companies, the industry estimates that the supply and demand for automotive chip production by chip maker should reach a balance in the fourth quarter of this year. year.”

The issue has taken on a heavily diplomatic tone as Taiwan strives to reassure the United States, its most important international supporter and arms supplier, that it is doing all it can, especially at a time when Taipei is facing mounting military pressure. from China, which sees Taiwan as its own.

The ministry noted that Taiwan’s semiconductor companies have been expanding production and emphasized that these companies, as well as the government, place great importance on working with “like-minded partners,” language Taipei uses to refer to other democracies such as the United States and the European Union.

Taiwan “will continue to work together to build a secure, reliable and resilient supply chain and deepen economic and trade relations to lay a solid foundation for economic recovery after the pandemic,” he added.

Last month, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chip maker, said the shortage of automotive chips would gradually ease for its customers from this quarter, but expects the overall semiconductor capacity squeeze to ease. possibly extend into next year.


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