TSMC chief sees end to chip shortage that hammered auto industry

TAIPEI: Taiwan Semiconductor Manufacturing Co. expects a further easing to a chip crunch that’s restricted production in the global automotive industry, including for giants like Toyota Motor Corp. and General Motors Co.

The shortage of crucial semiconductors for cars has persisted for over a year. In November, Ford Motor Co. chief executive officer Jim Farley warned about supplies of legacy, or more mature, silicon.

Vietnamese electric-vehicle maker VinFast said it was forced to delay rollouts of SUVs in Europe and Canada.

"Automotive demand continued to increase and today we’re still probably not supplying 100% of the wafers they want, but it’s improving,” TSMC chief executive officer C. C. Wei told analysts on a conference call.

"We expect the shortage to be relaxed quickly. We expect auto shipments to grow again this year.”

TSMC on Thursday predicted sales below analysts’ estimates and said it will reduce spending as the chip industry braces for a potential recession and tighter US trade controls.