Taiwan Semiconductor Manufacturing Company (TSMC) earlier this year cranked up its investment engine in order to expand operations and expedite upgrades in response to the ongoing global chip shortage. Based on remarks made during a recent earnings call, it seems as though the infusion of cash will start to pay a return before the end of the year.
TSMC CEO C. C. Wei said during the aforementioned earnings call that his company is on track to boost output of chips used in vehicles by 60 percent this year compared to 2020. There was also talk of TSMC building a new facility in Japan, we’re told.
Unfortunately, the semiconductor industry at large is likely to see shortages extend into 2022, Wei added.
The auto industry has been hit especially hard by the ongoing chip shortage, with manufacturers like Ford, Chevy and Jeep having to cancel production of thousands of vehicles this year. But as Car and Driver highlighted last month, it’s partially their own fault for canceling orders during the early days of the Covid-19 pandemic. Customers in other industries took advantage of this freed up capacity, leaving little production capacity for the auto industry.
TSMC, meanwhile, is no doubt singing all the way to the bank. The company said revenue increased 20 percent in the second quarter compared to the same period a year earlier, while net profit jumped 11 percent.