Lack of obsolete chips is slowing down the industry

According to a TSMC executive, a general lack of chips priced between 50 cents and $10 will stymie the $600 billion semiconductor sector’s expansion and impede manufacturing in critical supply chain parts.

The company is building new factories to ease demand pressure

The largest contract chip manufacturer in the world is establishing new factories because it can no longer meet demand for low-cost chips at its old ones and is planning to raise the price of even current chips in the near future.

So Xi Wei, CEO of TSMC, stated that the shortfall was brought on by the fact that cellphones now need two to three times as many power management chips as they did five years ago, while automakers continue to add capabilities to their vehicles and use 15% more silicon annually.

Production of $50,000 autos is being held up, he claimed, by a 50-cent radio chip.