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Taiwan semiconductor firm to set up chip factories overseas

Good news for car companies waiting for electronic components

TSMC’s expansion plans will certainly be relief for automakers. PHOTO FROM FORD

The worldwide chip shortage is wreaking havoc across the automotive industry. Car companies have had to reduce production output as precious electronic components are in short supply. Chip suppliers are prioritizing manufacturers of smartphones and computers—two devices that are necessary in remote working setups, which are very common these days. However, a Taiwanese semiconductor giant plans to build more factories that will hopefully meet the increased demand for electronics.

Taiwan Semiconductor Manufacturing Company is mulling the construction of more manufacturing facilities outside of its home country. According to Reuters, the firm is considering expanding its current plants in China and Arizona, and setting up shop in Japan for the production of semiconductor wafers. It is not clear if the additional factories will be solely dedicated to the car industry. But any additional supply of chips will surely alleviate the current semiconductor crisis and allow automakers to resume full-scale production.

The Taiwanese company fears the constant threat from China. PHOTO FROM TSMC

However, TSMC says that such plans are not due to the global shortage. Majority of the world’s chips are produced in Taiwan, and the company fears the possibility of neighboring China using military force to bring the island nation into submission. In case the political conflict between the two countries escalates, building factories around the world should, in theory, avoid worsening the current shortage or prevent another one from occurring.

Miggi Solidum

Professionally speaking, Miggi is a software engineering dude who happens to like cars a lot. And as an automotive enthusiast, he wants a platform from which he can share his motoring thoughts with fellow petrolheads. He pens the column ‘G-Force’.