The chip crunch will continue in 2022

TSMC plant in Taiwan. © iStock.

Chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) has reiterated that it expects chip shortages to continue into next year. The warning came as the company reported its latest quarterly results, which saw its net sales rise almost 20 percent to CA$ 16.8 billion compared to the same quarter the previous year. Last April, TSMC CEO had cooled hopes for 2022 when he cautioned that “In 2023, I hope we can offer more capacity to support our customers. At that time, we’ll start to see the supply chain tightness release a little bit.”

That said, TSMC says it is doing everything it can to mitigate the chronic shortage that is hampering the production of a myriad of consumer products, from cars to gaming consoles. The company has committed to spending US$ 100 billion through 2023 to expand its capacity, and in this year alone, it expects microcontroller production to increase by almost 60 percent. Last month, the company started construction of a new US$ 12 billion semiconductor manufacturing facility in Arizona, and in April, it confirmed it would spend US$ 2.8 billion expanding production in Nanjing, China, Nikkei Asia reports. The company is also considering building its first chip plant in Japan.

⇨ The Verge, Jon Porter, “TSMC’s revenues surge as it warns chip shortage will continue into next year.”

2021-07-15