Germany looks toward Taiwan for resolving auto chip shortage crisis

Germany looks toward Taiwan for resolving auto chip shortage crisis

by Nandita Bhardwaj

German authorities have reportedly asked Taiwan’s Government to convince local manufacturers in lending a hand for easing the semiconductor shortage in the automotive sector amidst the economic recovery from the Covid-19 pandemic.

Automakers across the globe are shutting down production due to complications in the supply of semiconductors. Trump administration’s action against major Chinese chip factories has worsened the scenario to some degree, cited sources knowledgeable with the matter.

In particular, the shortage has affected Ford Motor Co., Volkswagen, Subaru Corp., Nissan Motor Co., Toyota Motor Corp., and Fiat Chrysler Automobiles among other carmakers, sources confirmed.

Peter Altmaier, German Economy Minister, raised a query to his Taiwanese counterpart, Mei-Hua, asking to resolve the issue with the help of TSMC (Taiwan Semiconductor Manufacturing Company), one of Germany’s premier suppliers which also happens to be the leading contract chipmaker in the world.

Taiwan’s Ministry of Economic Affairs reverted saying that it received requests through diplomatic channels, however, was not aware of Altmaier’s letter.

The TSMC, in a statement, stated that the problem of chip shortages for auto companies is of great importance to them. It appears that the company is also urging domestic chip suppliers to provide full assistance to the requests from other countries.

For the record, the German automobile industry was already in direct talks with TSMC about increasing deliveries and TSMC was adamant to solve the problem.

A German economy ministry spokeswoman, on the matter, expressed that reducing reliance on Asian suppliers and avoiding similar problems will soon be a reality as Berlin is planning to boost state support for expanding semiconductor production capacities in Germany and Europe.

The relevant supply-demand scenario is also closely linked to the intentions of automotive chip factories to lower their inventory during the off-season, added the German ministry. The ministry has decided to wait until TSMC receives Altmaier’s letter before deciding whether to contact the chipmaker again.

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Nandita Bhardwaj

Having a marketing management post graduate degree under her belt, Nandita spent considerable time working in the field of recruitment. However, her real interest lay in playing with words and soon enough, she commenced her career in the field of content creation. Currently, she authors insightfu Read more...