A chip shortage is causing disruptions in the semiconductor industry, Taiwan Semiconductor Manufacturing Co’s (TSMC) CEO, says.
As reported by Bloomberg, the chips cost between 50 cents and $10, and the shortage impacts several companies.
Sharing one example, TSMC CEO C.C. Wei told a group of attendees at a tech conference that ASML Holding NV, located in the Netherlands, is having difficulty securing $10 chips used for its extreme ultraviolet lithography systems.
Wei said TSMC is building more plants to keep up with demand. He said shortages in the automaker sector are the result of companies adding features to cars and increasing the amount of silicon used. In the mobile world, smartphones now require up to triple the number of power management chips compared to five years ago.
“The age of an efficient, globalized supply system has passed,” Wei said. “Costs are swiftly rising, including inflation.”