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TSMC believes some companies are stockpiling chips

The ongoing chip shortage keeps ravaging the world of electronics, increasing product prices with no end in sight. While increased demand and the pandemic are two major causes behind this, companies hoarding chips could also be having an impact, according to TSMC’s chairman. 

In an interview with Time magazine, Mark Liu, TSMC’s chairman, revealed more about how the biggest semiconductor company is dealing with the ongoing chip shortage.

After gathering a team to collect data across supply chains, TSMC found some of its customers were accumulating chips. This led the company to reroute some of its chip production to customers that were actually low on stock. As you might expect, this decision wasn’t well-received by some, but Liu didn’t name any of the companies stockpiling chips.

Liu also commented on the $50 billion investment made by the US government in the national semiconductor industry, stating it won’t be enough. To put it in perspective, TSMC alone is investing $100 billion to increase its capacity over the next three years.

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KitGuru says: At this point, it is looking like there’ll be another year of shortages before supply begins catching up with demand. 

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