To help automakers, TSMC will have to move one of its customers

Edition Nikkei Asian Review is trying to explain what it will cost market participants recently made promises by the Taiwanese authorities to overseas automakers to give priority to the production of automotive semiconductor components.

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UMC explained that its production facilities have been operating at full capacity since the third quarter of last year. At the same time, the company does not abandon attempts to increase the volume of production of semiconductor components for the automotive segment.

The Taiwanese authorities, in response to complaints from foreign automakers, said that local contract manufacturers during the first nine months of 2020 warned customers against a sharp reduction in order volumes, but did not let these recommendations go deaf ears, observing a sharp decline in the automotive market.

As noted by a Japanese source, TSMC is ready to rapidly release a certain number of auto components, reducing the production cycle time by half, but at the same time it will have to explain to other customers that the lead time for their orders will increase, and in some cases they will have to sacrifice volumes. Miracles do not happen, because the law of conservation of the amount of matter says that if the boards disappear at a construction site, they will inevitably appear on someone’s private garden plot.