Yesterday, TSMC Chairman Dr. Mark Liu expressed his views on the causes of the chip shortage at the Taiwan Semiconductor Industry Association (TSIA) event.
Mark said that there are three main reasons for the shortage. The first reason is the accumulation of inventory in the supply chain caused by the epidemic; the second is that the epidemic has changed the way people live and work and accelerates the digitalization of various industries; the third is the increase in uncertain factors. The trade war between China and the United States has shifted the supply chain and market share. For example, some companies expect to get the market share that Huawei has lost after sanctions. These uncertain factors have led to repeated orders. He believes that the actual production capacity is actually greater than the real market demand.
The trade war has exacerbated the chip shortage. Mark pointed out that it is not economically realistic for any country to produce all chips on its own. The trade war shifted the supply chain and forced some companies to increase orders to ensure inventory, which became one of the third reason for the chip shortage.