TSMC Shifts to ‘Production at Risk’ to Meet Automotive Industry Chip Demands

TSMC and Samsung are rushing to the aid of the automotive industry which is facing a major processor shortage as we told you about last week. Not only has TSMC agreed to prioritize automotive chips, but the company is going into “super-hot run” mode.

Semiconductor production is a very (very!) Complex and time-consuming process, and at cruising speed many checks are carried out throughout the production line to ensure chip quality and improve yield. In order to reduce the production speed from 45-50 days to 20-25 days, TSMC will “heat the patties” and switch to “super-hot run” mode, a type of production that is riskier and therefore more expensive.

TSMC has not communicated who will pay the surcharge due to this more expensive production. But according to Nikkei Asia, Taiwanese Minister of the Economy Mei-hua Wang warned automakers last year that they had put their semiconductor orders on hold. Warning them of a “supply risk” which they are now paying the price.

While there is currently no automotive chip produced in the engraving finesse of SoCs for PlayStation, a Ryzen, a Radeon (7 nm) or Apple A14 and other Snapdragon 888 (5 nm), the risk still hangs over the reallocation of personnel to dedicated automotive channels. The flea shortage is not about to pass in the coming weeks …

Sources : WCCFtech, Nikkei Asia

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