Taiwan’s semiconductor manufacturing, one of the companies best positioned to know the trend of emerging chip shortages in the auto industry, has some good and bad news this week.
In a conference call held on Thursday to discuss Taiwan Semi’s quarterly results (symbol: TSM), CEO Wei said the shortage had worsened due to snowstorms and freezing temperatures that were “ worsening ”. The Texas state blow in February and the “great disruption to production in Japan” are clear references to a fire that struck a major chip factory there last month. Several types of chips may still be poorly found by 2022, he said.
The good news, however, is that Taiwan Semi sees the situation for most of its automotive chips in its own right by the end of the third quarter. “With our performance improvements, we expect a shortage of semiconductor automotive parts to take place. A big drop for TSMC customers within the next quarter, ”said the CEO.
(F) and General Motors (GM), along with other automakers, have halted production at some factories as they wait for parts. Both Ford and GM have already said chip shortages will bring profits in 2021.
Ending the chip shortage in the third quarter would be better than it would have continued in 2022, but it could still mean auto companies shifted their financial forecasts that worsened when they reported earnings. First quarter in the coming weeks Many investors expect the shortage to resolve itself in the first half.
And the language Wei used in April was worse than he said in January, when the company reported fourth-quarter numbers. “We saw that at the time, the supply of complete technology of the vehicles was a little lacking,” Wei said in the episode. “And we are working with customers to reduce the impact of the shortage.”
Mature technology, essentially a less complex semiconductor The pandemic, the resurgence in automotive sales from the outbreak, the difficulties in producing new semiconductor technologies across the industry, and strong demand for things like 5G phones and high-performance computers all contributed to the automotive situation. At present
In the long term, Taiwan Semi is planning to increase its capital expenditures significantly to meet the growing demand and ensure that the shortage does not arise again.
Automotive investors don’t seem to be too worried. Ford and GM stocks are down about 2% this week, while
And the Dow Jones Industrial Average was both up slightly more than 1%.
Still, both Ford and GM stocks are up about 40 percent compared to the previous year. The semiconductor shortage remains a concern for investors right now.
Write to Al Root at firstname.lastname@example.org.