Semiconductor chips are a major component of modern consumer electronics as well as new-age vehicles. But there has been an existing shortage for almost two years now and this has hampered supply and manufacturing processes globally. Taiwan has an important role to play here as many chip-manufacturing facilities are located here. However, in the event of a military conflict, operations at these facilities could be seriously affected.
Taiwan Semiconductor Manufacturing Company Limited (TSMC), the world’s largest contract chip maker and Taiwan’s most valuable company, has already warned that operations could be turned ‘non-operated’ if tensions with China escalate. Is. TSMC’s Mark Liu said in a recent interview to CNN that if China attacks Taiwan, TSMC will not be able to function because it is dependent on the global supply chain. And it could have far-reaching effects not only on the production of consumer electronics but also on vehicles.
But it is not just TSMC that could be affected. The consequences could also be far-reaching for other manufacturers such as United Microelectronics Corp., ASE Technology, MediaTek, AU Optronics, among others.
The Federation of Automobile Dealers Association (FADA) in India has already issued a warning. FADA has said that after the Russo-Ukraine war, the world is once again facing the threat of a Taiwan-China war. Due to this, the threat of semi-conductor shortage is looming once again as chip maker TSMC may halt its production in the event of a war.
what are semiconductors
Semiconductors are electronic chips made from silicon. These help to control the current in the electronic circuits of cars. Cars today cannot be imagined without them. At present, all the cars available in the market use semiconductors. Cars cannot be made hi-tech without them.
Semiconductors are used in cars for display panels, navigation, lights, power steering and almost all automatic features. Due to the shortage of chips, there has been a huge shortage of semiconductors in the automobile industry, so cars are not being produced in the stipulated number.
Why Semiconductor Shortage Happened
Currently, the best quality chips are supplied by companies like TSMC, Qualcomm Inc. and Intel Corp. However, the global corona pandemic has disrupted the supply of companies’ chips. Because of this, these companies are not able to produce semiconductors according to the demand.
Apart from this, the demand for semiconductors has increased in electronic devices like smartphones, TVs, such, due to which the manufacturing companies are not able to supply. For this reason, the price of some semiconductor chips used in cars has gone up. There has been an increase in the cost of display driver chips in cars, which are also used in the production of televisions, laptops, cars and aircraft.