Ministry of Industry: "TSMC and Others Increase Auto Semiconductor Production Utilization by 2-3%... Expecting Future Improvement"

'Future Car-Semiconductor Solidarity and Cooperation Council' 2nd Meeting Held

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Trade, Industry and Energy announced on the 7th that "major foundries in Taiwan, including TSMC, have increased their production line operating rates by about 2-3% to 102-103% through internal adjustments of production processes, thereby increasing supply volume." The government expects that although it will take at least two months or more for the increase in foundry-level production to be reflected at the finished vehicle stage, it will contribute to improving supply and demand conditions to some extent in the future.

On the 7th, the Ministry of Trade, Industry and Energy held the 2nd meeting of the 'Future Car-Semiconductor Solidarity and Cooperation Council' at the Korea Chamber of Commerce and Industry to review the domestic vehicle semiconductor supply and demand trends and the government's progress on short-term support.

Due to the global semiconductor supply shortage, most global automakers such as Volkswagen and Toyota are experiencing production disruptions. In particular, supply concerns have worsened due to a fire at the Renesas factory in Japan, the world's third-largest vehicle semiconductor manufacturer, on the 19th of last month. Domestically, following Korea GM, Hyundai Motor and Kia are also experiencing some production disruptions.

Prior to this, the government requested major countries, including Taiwan, where many semiconductors are outsourced for production, to expand production and supply through public-private cooperation channels. In response, Taiwan stated in a letter to our government that it is actively working to resolve vehicle semiconductor supply instability through various channels.

In addition, to ensure uninterrupted procurement of vehicle semiconductors, the government is promoting ▲ expedited customs clearance ▲ rapid review for self-quarantine exemption ▲ negotiation support for companies facing supply difficulties. In fact, between February 17 and March 31, expedited customs clearance was supported for a total of 5,549 cases (worth approximately $240 million) related directly or indirectly to vehicle semiconductor parts from 15 companies.

Kang Kyung-sung, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, said, "We are doing our best to minimize damage to domestic companies caused by vehicle semiconductor supply disruptions," and added, "We will do our utmost to promote industrial policies to strengthen the domestic vehicle semiconductor industry's capabilities, including support for technology development, infrastructure establishment, prototype production support, and investment support related to domestic vehicle semiconductors."

This content was produced with the assistance of AI translation services.