Hardware

TSMC: some manufacturers buy too many chips in reserve, creating artificial shortages

There are many factors behind the chip shortage that has affected many industries. For example, this is a sharply increased demand for chips, production problems caused by the coronavirus pandemic, and cryptocurrency mining. According to TSMC, this list can also include an artificial shortage created by companies that accumulate large stocks of chips.

hothardware.com

hothardware.com

It may seem incredible that companies can stockpile chips in the face of scarcity. However, this is the case, and this is one of the main reasons that there are not enough chips for others. TSMC chairman Mark Liu explains that some companies have started buying up chips in panic over concerns about the potential impact on the industry of an escalating trade war between the United States and China. Liu says he doesn’t know which companies are stocking the chips, but claims that far more chips have been produced than the final products with them.

Chip accumulation is one of the challenges that TSMC is facing and the company is taking action to remedy the situation. Liu says he and his team are analyzing the data to determine which customers really need the chips, and which ones are buying and saving them. Liu said that as a result of market research, TSMC has postponed orders for a number of large customers, although they may not be satisfied with such a decision, because the largest chipmaker “must do what’s best for the industry“.

It will be interesting to see how TSMC’s chip stockpiling policy affects the marketplace. Nevertheless, industry experts are confident that the deficit should not be expected to weaken in the coming months.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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