The global semiconductor shortage crippling the tech and automotive industries is likely to continue into the next year, according to chip giant TSMC.
The Taiwanese semiconductor manufacturer said that, although the scarcity of auto chips will gradually ease during the current quarter, the overall semiconductor shortage will likely extend into 2022, the company revealed during an analyst call on Thursday, as reported by Reuters.
The high demand for chips, especially the 5-nanometre node type used in 5G-supported smartphones, helped fuel TSMC’s Q2 results, with the company reporting a profit increase of 11% from the year prior and a revenue growth of 28%.
The company expects demand to continue into the third quarter, estimating Q3 revenue to grow between 21% and 23%, with 3-nanometre node chips scheduled to enter trial production in the next few months.
TSMC’s CFO Wendell Huang told analysts on the call that the company’s “second-quarter business was mainly driven by continued strength in high performance computing (HPC) and automotive-related demand”.
"Moving into the third quarter, we expect our business to be supported by strong demand for our industry-leading 5-nanometre and 7-nanometre technologies, driven by all four growth platforms, which are smartphone, HPC, IoT and automotive-related applications,” he added.
TSMC’s chip shortage predictions echo the opinions of Cisco CFO Scott Herren, who in May confirmed that the company’s recent supply chain disruption, caused by the global semiconductor shortage, could last until the end of 2021, with a possibility that they would extend until 2022.
RELATED RESOURCE
The Total Economic Impact™ of IBM Spectrum Virtualize
Cost savings and business benefits enabled by storage built with IBMSpectrum Virtualize
Meanwhile, Dell Technologies founder and CEO Michael Dell said he expects that the chip crisis “will probably continue for a few years”, and warned that it could take some time before the semiconductor shortage is dealt with accordingly.
TSMC was previously involved in discussions with EU officials around building a TSMC semiconductor plant in Europe in order to remedy the impact of the global semiconductor shortage on the continent. However, the talks quickly collapsed and the chip company switched its attention to markets in North America and Japan, where a $338 million (£238 million) semiconductor research project will aim to develop new chip technology.
-
OpenAI's new GPT-4.1 models miss the mark on coding tasksNews OpenAI says its GPT-4.1 model family offers sizable improvements for coding, but tests show competitors still outperform it in key areas.
-
Meta just revived plans to train AI models using European user dataNews Meta has confirmed plans to train AI models using European users’ public content and conversations with its Meta AI chatbot.
-
MSG giant Ajinomoto's chipmaking foray helps break financial recordsNews In addition to umami seasoning, the company produces a microfilm insulation used by the semiconductor industry which was repurposed from its amino acid technology
-
IBM unveils its 'most powerful' 433-qubit quantum processorNews The Osprey is three times more powerful than IBM's 127-qubit Eagle processor the company launched a year ago
-
Blackberry revenue falls by 4% as cyber security division takes hitNews Despite this, the company’s Internet of Things (IoT) division increased its revenue by 28% as it attracted new customers from the automotive sector
-
SK Hynix splashes out $11 billion on new semiconductor plantNews The company will produce memory chips, but will reportedly decided closer to the time whether they will be DRAM or NAND flash chips depending on market conditions
-
Intel strikes $30 billion private equity partnership to fund Arizona plant expansionNews Brookfield Infrastructure Partners will invest around $15 billion into the expansion of the chipmaker’s Ocotillo campus
-
The best 3D printer tools and accessories for your businessIn-depth Every business using 3D printers should be aware of these essential extras to raise its output to the next level
-
LED vs laser printers: Which is better for business?In-depth Laser and LED printer technology is similar, but each come with their own unique benefits that could make them best for your company
-
Intel to produce chips for Taiwanese manufacturer MediaTekNews The agreement comes after the US chip company managed to secure deals with Amazon and Qualcomm last year
