Component Sense Blog

TSMC Warns of Chip Shortage Until 2022

TSMC Warns of Chip Shortage Until 2022

Taiwan Semiconductor Manufacturing Co. has warned that the global semiconductor shortage could last beyond 2021.

According to recent reports the chipmaker expects the shortages to ease in the coming quarter. However, in a conference call with investors, Chief Executive C.C. Wei, predicted that the problem will continue until 2022.

Meanwhile, TSMC Chief Financial Officer Wendell Huang stated that the company plans to spend about US$30 billion in capacity expansions and upgrades in 2021, up from a previous estimate of US$28 million.

TSMC will also spend $100 billion to increase capacity at its fabrication facilities, which are currently operating at "over 100% utilisation" but lack the capacity to meet the needs of all of its customers.

“We see the demand continue to be high,” said Wei. “In 2023, I hope we can offer more capacity to support our customers. At that time, we’ll start to see the supply chain tightness release a little bit.”

TSMC isn't alone in its belief that the chip shortage will last beyond 2021. According to Foxconn the issue is “likely to extend to at least the second quarter of next year”, while Intel said “I think this is a couple of years until you are totally able to address it. It just takes a couple of years to build capacity.”