TAIPEI: Taiwan Semiconductor Manufacturing Co Ltd (TSMC) said on Friday that it has increased its 2021 output for a key component for automotive semiconductors by 60per cent compared with last year, amid a global chip shortage.
TSMC, the world's largest contract chipmaker, said it had taken "unprecedented actions" to help automakers.
That includes reallocating capacity to other industries that are also experiencing "stressfully high demand due to the acceleration of digital transformation".
"With a fixed short-term capacity, TSMC managed to increase 2021 output for MCUs (microcontrollers), one of the key components in automotive semiconductor products, by 60per cent over the 2020 level," it said.
This represents a 30per cent increase over the 2019 pre-pandemic level, the company added.
TSMC will continue to work with the automotive supply chain to deal with this current shortage, it said.
Modernising the "Just-in-Time" supply chain management method and increasing demand visibility should be the path to avoid such shortage from happening in the future, TSMC added.
The global chip shortage, which started last year, has shuttered some auto production lines and is impacting consumer electronics as well.
TSMC has repeatedly said it is doing its best to address the shortages and increase production.
U.S. Commerce Secretary Gina Raimondo said Thursday she held meetings with three dozen senior industry leaders on a semiconductor chip shortage and said the United States could help boost transparency in the market.
The meeting included General Motors Co, Ford Motor Co, Stellantis NV, chip suppliers and other users of chips.
(Reporting by Ben Blanchard; Editing by Ana Nicolaci da Costa)