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Trump's legacy - carmakers shut down factories over Chinese chip shortages

Ukraine / Asia / Engineering

Taiwan's Ministry of Economy said Sunday that it has received numerous requests from foreign governments through diplomatic channels to help reduce the chip shortage for the automotive sector.

Trump's legacy - carmakers shut down factories over Chinese chip shortages

Auto makers around the world are closing assembly lines due to global semiconductor shortages, in some cases exacerbated by the actions of the former Trump administration against key Chinese chip factories, according to auto industry officials quoted by Reuters.

The deficit affected Ford Motor Co, Subaru Corp, Toyota Motor Corp, Volkswagen, Nissan Motor Co Ltd, Fiat Chrysler Automobiles and other car manufacturers.

The government of Taiwan, home to the world's largest contract chip manufacturer Taiwan Semiconductor Manufacturing Co Ltd (TSMC), said it has been contacted by foreign governments regarding the issue. One of the last was the German government, the Minister of Economy of which announced the sending of a corresponding appeal to Taiwan.

Taiwan's Ministry of Economy said major international automakers are not direct customers of Taiwanese semiconductor chip makers, but other car chip makers place orders with Taiwanese manufacturers and sell them to automakers.

“The corresponding situation with supply and demand is also closely related to the plans of the factories to reduce stocks in the off-season,” the ministry said.

They said that they are negotiating with domestic suppliers of microcircuits in response to inquiries from other countries and "asked the manufacturers of microcircuits to provide full assistance."

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