Although there was news that chip foundry production capacity was tight in the second half of last year, chip supply was tight. It began to show up in the automotive field at the beginning of this year and then extended to smartphones and home appliances.
The current global shortage of chip supply in many fields is caused by various factors of supply and demand. In terms of supply, it is largely constrained by the tight supply of substrates and the tight production capacity of foundries.
Many chip foundries such as UMC have already Running at full capacity, and due to the tight production capacity, many chip foundries have also raised their foundry prices.
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The tight production capacity of chip foundries is an important factor in the current shortage of chips in many fields. Relieving the tight supply of chips means that chip foundries are required to expand production capacity and increase output.
English-language media reports show that TSMC CEO Wei Zhejia revealed that they are accelerating capacity expansion to respond to strong demand from different industries. TSMC is currently the world’s largest chip foundry. Their process technology leads other manufacturers and has gained more than half of the foundry market.
Their acceleration of capacity expansion will also help ease the current chip supply shortage. Judging from English media reports, TSMC will invest US$100 billion to expand production capacity by 2023.
