Automakers may soon get a lot more of the chips they need to get cars for sale.
Why it matters: Winter weather, a fire and the COVID-19 pandemic have contributed to a shortage in chips that has stalled the production of new cars.
- This disruption even affected the used car market where prices are surging so much that it’s distorting national inflation data.
Driving the news: Chip giant Taiwan Semiconductor reported its Q2 earnings on Thursday, and with it announced relief was coming for automakers in need of chips.
- On a call with analysts, CEO C.C. Wei said its production of micro-controlling units for cars would be up 60% in 2021 compared to last year.
- "By taking such actions, we expect the automotive component shortage from semiconductors to be greatly reduced for TSMC customers starting this quarter," he said.
- Taiwan Semiconductor controls a little over half of the chip production market share as measured by dollar value.
Yes, but: Cars need as many as 1,400 different computer chips so it’s too early to say the auto industry is in the clear.
The bottom line: Supply chain issues are plaguing industries all over the world. So, it’s good news to hear things are at least improving.