Chip manufacturer TSMC warns that the shortages could last until 2022

0

TSMC, which makes processors for Apple, Qualcomm, AMD and many other major consumer tech companies, has warned that the chip shortage could last until 2022. “We see that demand remains high,” said CC Wei, CEO of TSMC. indicated by Bloomberg, “I hope that by 2023 we can offer more capacity to support our customers. At that point, we’ll see the tightness of the supply chain release a bit. “

Wei’s comments echo the predictions of Intel’s new CEO Pat Gelsinger earlier this week, who warned it could take a few years to address the deficit. The Washington Post reported“It only takes a few years to build capacity,” said Gelsinger. Likewise Nvidia’s CFO Colette Kress said recently the graphics card manufacturer expects “demand will continue to outpace supply for most of this year.”

The global shortage of chips affects everyone from car manufacturers to game console manufacturers. Car makers have had to scale back production, while anyone looking to upgrade their game setup struggled to find new graphics cards, CPUs, PS5s and Xboxes.

TSMC has good news for its automaker customers and says they can expect chip supplies to improve next quarter. But comments from TSMC, Intel and Nvidia suggest the wider deficits are unlikely to ease anytime soon.

TSMC says it is already running its plants at “over 100 percent capacity utilization,” but in the medium term it is increasing investment in new production. “We have acquired land and equipment and have started building new facilities. We are hiring thousands of employees and expanding our capacity in multiple locations, ”Wei said in comments indicated by Reuters

TSMC now plans to invest $ 30 billion this year in upgrading and expanding its manufacturing capacity (compared to a previous forecast of between $ 25 and $ 28 billion). It reiterated that construction of the $ 12 billion Arizona plant is yet to begin this year. Overall, the company plans to invest $ 100 billion to increase capacity in its factories over the next three years.