Microchip manufacturer Tawain Semiconductor Manufacturing Co Ltd. (TSMC) estimates that they will have caught up with the “minimum requirement” customer demand for auto microchips by the end of June according to Chairman Mark Liu.
Automakers have been forced to shut down assembly lines from a sizeable shortage of microchips for their industry. Massive auto manufacturing facilities for Honda, General Motors, Toyota, Volkswagen and Mistubishi have all been forced to close as a result of the shortage.
The chip shortage has been caused largely by COVID-19 pandemic restrictions, forcing workers at chip manufacturing plants to either not work or work less. An increasing reliance on microchips from tech-heavy car designs has exacerbated the issue, as well as trade restrictions imposed on Asian microchips by the Trump Administration.
In his interview on CBS’ 60 Minutes, Liu discussed TSMC’s timeline and also how long it would take consumers to see the effects of replenished supply.
“Today, we think we are two months ahead, that we can catch up the minimum requirement of our customers, before the end of June,” said Liu.
Unfortunately for consumers, this does not mean that they will see the impact of increased microchip supply in June, according to Liu. The processing time and supply chain required to make the cars is complex, usually taking anywhere from 6 to 8 months before actually getting into the hands of consumers.
According to TSMC, the world’s largest microchip contract fulfiller, the shortage has even begun to bleed into the consumer electronics sector.