The global semiconductor shortage is expected to last until 2023 as the COVID-19 pandemic boosts demand for chips for automobiles and smart home devices, United Microelectronics Corp (UMC, 聯電) copresident Chien Shan-chieh (簡山傑) said yesterday.
Speaking at the company’s annual general meeting in Hsinchu, Chien said that while the COVID-19 pandemic has had an adverse impact on the global economy, digital transformation has accelerated growth in the semiconductor industry.
Chip supply would fall short of demand and only worsen in the short term, with a shortage of 8-inch and 12-inch wafers set to be the most severe, Chien said.
Photo: Grace Hung, Taipei Times
As demand continues to soar, the global chip shortage is likely to last beyond next year until 2023, he said.
To solve the problem, the key is to increase capacity, Chien said, but added that even with chipmakers investing in fabs to expand capacity, it would take until 2023 for more chips to be produced.
UMC’s revenue grew 26 percent in US dollar terms last year, while its operating income surged to NT$22.01 billion (US$786.27 million), reflecting solid utilization rates across both 8-inch and 12-inch facilities, and optimization of the company’s blended product mix, he said.
Of particular note has been the company’s enhanced 12-inch product mix, which is primarily a result of the substantial pickup in the 28-nanometer wafer business, as well as the successful integration of 12-inch operations at its Japanese subsidiary United Semiconductor Japan Co, he added.
Shareholders of UMC, the world’s third-largest contract chipmaker, yesterday during the online meeting approved a plan to distribute a NT$1.6 cash dividend.
The company last year posted consolidated revenue of NT$176.82 billion, or earnings per share of NT$2.42, up 19.3 percent year-on-year.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A TAIWAN DEAL: TSMC is in early talks to fully operate Intel’s US semiconductor factories in a deal first raised by Trump officials, but Intel’s interest is uncertain Broadcom Inc has had informal talks with its advisers about making a bid for Intel Corp’s chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal. Bloomberg News earlier reported that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks for a controlling stake in Intel’s factories at the request of officials at US President Donald Trump’s administration, as the president looks to boost US manufacturing and maintain the country’s leadership in critical technologies. Trump officials raised the
RSS