SG Talk

By Ramish Zafar
Oct 23, 2021 10:11 EDT


The Taiwan Semiconductor Manufacturing Company (TSMC) plans to raise funds for its new chipmaking facility in the United States as chip manufacturers deal with a global shortage.

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In addition to its Arizona subsidiary announcing a debt offering for the U.S. chip facility, TSMC also battled a fire at the site where its chipmaking facility is located for the leading-edge 5-nanometer (nm) chip process.

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TSMC Arizona, filed a prospectus with the Securities and Exchange Commission (SEC) earlier this week, in which it outlined its plans to sell debt worth US$4.5 billion. While the prospectus, which is a document that informs potential investors about the nature of the company soliciting investment and the use of the funds generated, does not explicitly mention constructing a semiconductor fabrication plant, it is highly likely that the funds will be used for purposes associated with this.

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After reports of an across-the-board price increase in the chipmaking sector earlier this year, fresh rumors from Taiwan bear news of more hikes. According to news outlet Jiwei, TSMC might further increase prices from the start of next year, as another Taiwanese chipmaker UMC, has reportedly notified its customers of a sub-10% hike from January.

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Responding to requests from the United States Department of Commerce to share supply chain data, TSMC announced yesterday that it would submit this data by the 8th of next month.


https://wccftech.com/tsmc-fire-near-5nm-...r-u-s-fab/

After looking at this semicon "shortage" and fear over it.

Here is my assessment :

1. Low end chips for all sorts of mundane things from clocks to weighing machines to washing machine..air cons . There is no shortage here as there are many foundries that can make them.

2. Very high end chips for gaming PCs cloud and 5G. There is a shortage but the effects on economy is not that high as it merely slows here fast growing areas they will still grow but slower pace.

3. The mid end chips. Here is where the biggest mismatch is ...it has cause slowdown in car production employing millions around the world some.laptops and PC also affected. Unless it is solve it is hard for global economy to have full recovery.

Rather than chip shortage disrupting our lives badly...it will produce shortages in certain areas. Some laptops may not be available but no problems for other models. 2nd hand car prices in US rose tk above their buying price when new.... because of automobile industry partial shutdown.

I believe the effects to be patchy and a drag on the recovery rather than disruptive. Many sectors will not be affected.

Thus shortage also wake up govt around the world on the dependence on semi con. Its like energy and water....and essential product that affects any things.

Govt will try to be more self reliant or push for the supply chains to be more diversified. Many like US has off shore so much of their semi con capacity they risk disruption in the future.