Great Chip Shortage
Although Taiwan is a vital player in the global electronics supply chain, no one believed it had a chance to replicate its success in the automobile industry for a long time.
There was a time when no local manufacturer supplied the crucial components required for cars with internal combustion engines, but that changed when automakers began complaining about a chip shortage early last year.
Opportunities for Taiwanese companies
Automobile manufacturers today demand more electronic components than ever before in the battle to speed up electrified automobiles. This emphasizes the global quest for greener, more intelligent automobiles, as well as the fact that consumers today choose private transportation.
Although autos account for only a small percentage of TSMC’s total revenues, the Taiwanese chipmaker’s involvement in the global automotive supply chain is significant enough that high-ranking officials from the United States, Germany, and other nations have urged Taiwan to increase chip manufacturing.
Other Taiwanese companies, aside from TSMC, have benefited from the industry’s switch to electric vehicles. With considerably more electronic components needed for electric vehicles, Taiwan’s technology supply chain has taken full advantage of the opportunity.
The government of the southern city of Tainan is seeking suitable space in industrial parks to construct specific zones for automotive electronics suppliers to build factories and offices, and local officials are eager to assist additional Taiwanese enterprises.
“As industries undergo digital transformations, new materials, manufacturing models, and support from an end-to-end ICT supply chain will be required.” In an interview, the president of E Ink stated, “This is Taiwan’s strength.” F. Y. Gan.