Taiwan Ensures Global Chip Supply Shortage Will Be Ended In Q4

Taiwan's Minister of Economy, Wang Mei-hua. (photo: twitter)

JAKARTA - Global supply and demand for auto chips will reach "balance" in the fourth quarter of 2021. This statement came from the Taiwanese government on Saturday, August 21 which reiterated their commitment to do their part in tackling the chip shortage that has shut down production lines around the world.

US Democratic Senators from Michigan and Ohio this week called on the Taiwanese government to help address the shortfall. This is because the island nation 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 country's chipmakers are not the main suppliers of foreign integrated device manufacturers that make car chips.

"But the relevant chip manufacturers are fully cooperating with customers from all over the world, responding positively to their related needs, and helping to solve automotive chip problems", he said.

Economy Minister Wang Mei-hua was personally involved in talks with the Taiwanese chipmaker, who told him they had "actively resolved" the issue in the first half of this year and would continue to do so, the ministry added.

"Although the automotive chip industry chain is long and complex, with the full cooperation of our state enterprises, the industry estimates that the supply and demand for automatic chip production by chip manufacturers will reach a balance in the fourth quarter of this year".

The issue has taken on a strong diplomatic hue as Taiwan struggles to convince the United States, its most important international backer, and arms supplier, that it is doing all it can, especially at a time when Taipei is facing increasing military pressure from China, which views Taiwan as its own.

The ministry noted that Taiwanese semiconductor companies have been expanding production, noting that these companies and the government have made a big determination to work 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 safe, trusted, and resilient supply chain, and deepen economic and trade ties to lay a solid foundation for economic recovery after the pandemic", he added.

Last month, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW), the world's largest chipmaker, said the shortage of auto chips would gradually ease for its customers starting this quarter. However, they expect the overall semiconductor capacity tightening to continue into next year.