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TSMC Says Car Chips, iPhone 13 to Be Favored Over Other Products

TSMC is currently one of the largest chipmakers out there, and needless to say, it’s also one of the companies that have been working around the clock on ways to deal with the shortage that emerged last year.
TSMC to direct a bigger part of its output to car makers 1 photo
Photo: Daimler
Most recently, however, TSMC has decided to completely change the way it handles its output, therefore prioritizing some products over others.

And according to a recent report, TMSC wants most of its output to go to Apple to produce the next-generation iPhone and to car manufacturers worldwide for the vehicles they build.

While this is good news for Apple and the car industry, it’s certainly a terrible announcement for other industries, such as the PC market. PC and server orders would no longer be considered a priority, which means that waiting times in these sectors could increase significantly in the coming months.

The new strategy will come into effect in the third quarter of this year, which makes total sense given this is also the timeframe when Apple is projected to announce a new-generation iPhone.

At the same time, this decision could also help ease up the crisis in the car industry, where several companies turned to temporary production halts as they were struggling with the semiconductor shortage.

General Motors, for example, decided to sell some of its cars without start-stop systems, all because the company didn’t have enough chips to install on these models. Others turned to temporary shutdowns of their production lines, with similar decisions likely to continue until the production of semiconductors aligns with the continuously increasing demand.

Experts believe this whole struggle will continue into 2022. However, it remains to be seen how the market reacts once the production of semiconductors is accelerated at the biggest foundries and more companies, including giants like Intel, step in to help with the output specifically aimed at the car sector.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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