Global supply and demand for automotive chips should reach “balance” by the fourth quarter of 2021, the Taiwanese government said on Saturday, reiterating its commitment to do its part to address a shortage affecting production lines. around the world has closed.
Democratic US senators from Michigan and Ohio this week asked the Taiwanese government to help address the shortfall, as the island is a major semiconductor producer and is seen as central to efforts to solve the problem.
In response to the letter, Taiwan’s Ministry of Economy noted that the island’s chip makers were not the main suppliers to the foreign manufacturers of integrated devices that make automotive chips.
“But relevant chip manufacturers are fully cooperating with customers from all over the world, responding positively to their related needs and helping to solve the problem of automotive chips,” it said.
Economy Minister Wang Mei-hua has been personally involved in talks with Taiwan’s chip makers, who told her they “actively resolved” the issue in the first half of this year and will continue to do so, the ministry added.
“Although the automotive chip industry chain is long and complex, with the full cooperation of our country’s companies, the industry estimates that supply and demand for the chip manufacturer’s production of automotive chips should be in equilibrium in the fourth quarter of this year.” come.”
The issue has taken on a strong diplomatic twist as Taiwan makes an effort to reassure the United States, its main international supporter and arms supplier, that it is doing everything it can, especially at a time when Taipei is facing increasing military pressure from China. that’s what Taiwan considers its own.
The ministry noted that Taiwanese semiconductor companies have expanded production and stressed that these companies and the government place great value on working with “like-minded partners”, the language Taipei uses to refer to other democracies such as the United States and the European Union. .
Taiwan “will continue to work together to build a secure, reliable and resilient supply chain and deepen economic and trade relations to lay a solid foundation for economic recovery after the pandemic,” it added.
Last month, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, said the automotive chip shortage for its customers would gradually ease from this quarter, but expected the overall tightness in semiconductor capacity could extend into next year.