TSMC Warns Global Chip Shortage Will Persist Through 2022
The world's largest contract chipmaker reports surging profits but warns that tight semiconductor supplies will continue into next year. TSMC is rapidly expanding capacity and hiring to address the unprecedented global demand.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) states that a severe global chip shortage continues to impact multiple industries and expects tight supplies to last into 2022. The world's largest contract chipmaker reports a 19.4 percent rise in first-quarter profit, beating market expectations as remote work drives massive demand for advanced semiconductors.
To address the crisis, TSMC is taking aggressive steps to expand its manufacturing capabilities. The company acquires land and equipment, constructs new facilities, and hires thousands of employees across multiple sites to increase overall production capacity.
The shortage initially forces automakers to slash production but now disrupts manufacturers of smartphones, laptops, and household appliances. However, TSMC anticipates that the supply crunch for its automotive clients eases significantly by the next quarter as these targeted expansion efforts begin to take effect.