TSMC Says Chip Shortages Will Last Until 2022

The largest contract chip manufacturer, TSMC, believes the chip shortage will last until 2022. This deficit has already affected the automotive industry, the production of smartphones and consoles.

Taiwan's TSMC has warned that there will be a chip shortage in 2022. The company assured that they are doing everything possible to improve performance and reduce the shortage of microcircuits.

TSMC CEO C. C. Wei said that they started hiring thousands of employees and expanding capacity at several sites.

TSMC is the largest contract chip manufacturer, with customers including Apple, AMD, Qualcomm, and Nvidia. The company said earlier this month that it plans to invest $100 billion over the next three years to increase production capacity at its plants.

The company has also increased capital expenditure on advanced chip manufacturing and development to about $30 billion this year.

TSMC's customers plan to ramp up semiconductor stocks to ensure supply stability due to foreign policy uncertainties and the pandemic.

Nvidia and Intel also predict that the chip shortage will last until 2022. At the same time, Nvidia suggests that the problem of semiconductor shortages will gradually be resolved after the first quarter of 2022.

The global chip shortage arose against the backdrop of the coronavirus pandemic, which, on the one hand, led to the temporary closure of chip factories, and on the other hand, became an impetus for increased demand for various gadgets: computers, game consoles, and smartphones.

Earlier it was reported that the global shortage of computer chips had reached a critical point. According to forecasts, it will take 3-4 quarters to return to normal chip production rates; another 1-2 quarters will be needed to bring the market situation back to normal.