Strong demands for automotive industry to continue till end of the year as TSMC promised capacity support

The global automotive chip shortage that began at the beginning of this year is still continuing. Volkswagen, GM, Ford, Toyota, Stellatis, Hyundai, and many other manufacturers have been affected, and the scope is still continuing.

The tight production capacity of foundry companies is a major factor in the current global automotive chip supply. Intel CEO Pat Kissinger once told analysts that the current challenges facing the chip industry are due to foundry capacity, substrates, and parts.

The tight supply of automotive chips means that OEMs need to provide more capacity support to ease the current tension.

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Wei Zhejia, the CEO of TSMC, the world’s largest chip foundry, revealed on the earnings analyst conference call in the first quarter that after the shortage of automotive chips, they are also doing their best to support customers. It is expected that the shortage of automotive chips will improve significantly in the next quarter.

TSMC provides more capacity support to automotive chip suppliers, which means that subsequent packaging and testing service providers also need to provide capacity support at the same time.

According to reports from industry chain sources, due to TSMC’s commitment to providing more capacity support for automotive chip suppliers, the strong demand for wafer testing services will continue until the end of the year.