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Taiwan Surging To Record Chip Production, Still Not Enough

With the consumer electronics and automotive industries crying out for semiconductors, Taiwan’s production looks like leaping more than a quarter this year to a record high – the biggest rise in a decade. But it still won’t be enough to satisfy demand.

A new report says the country’s output will rise 25.9 per cent to 4.1 trillion New Taiwan dollars, around US$147 billion. That is then expected to grow to NT$4.5 trillion next year, mostly driven by the manufacturing of advanced chips.

Earlier this month, the world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co, announced they will build a new factory in the southern city of Kaohsiung, at a cost of around US$9 billion.

But even with all this growth, the global chip crisis is expected to last into 2022.

“Semiconductor production could face a bottleneck in 2022,” says the Industry Research Division at Japan’s Mizuho Bank.

One aspect of the problem is the slow growth in the supply of upstream materials such as 300mm silicon wafers for cutting-edge chips.

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