Complying with the US Department of Commerce’s request, TSMC has submitted a report detailing its business activity.
Such reports were requested by the US DoC for understanding the semiconductor industry better, as there’s a drastic shortage in their supply now. Following TSMC, the South Korean ministry too is now readying a report on Samsung as the US’ request.
Understanding the Chip Industry
Last year’s pandemic has resulted in various unwanted outcomes. One among them is the production of semiconductors! Several chip manufacturers around the world were forced to halt their routines, due to the rise of COVID-19.
And the consequences of that were kicking in now. From smartphone manufacturers to automakers, most electronic OEMs are suffering from chip shortages, and were unable to increase their supply.
As this is growing the gap between demand and supply worldwide, the US Department of Commerce had asked all chip manufacturers to submit their progress reports, to analyze the shortage effectively.
So complying with its request, the Taiwan Semiconductor Manufacturing Company (TSMC) has submitted its report to the US DoC.
Also, it informed the public that no customer-specific data was shared in the report, as the company is committed to “protecting customers’ confidentiality as always,” said TSMC’s spokeswoman Nina Kao.
The details that the US Department of Commerce asked were regarding their inventories, backlogs, delivery time, procurement practices, and any measures being taken to increase the output of chips. Also, there’s a request for mentioning the top customers of each firm.
Though submitting a report of such is totally voluntary, Gina Raimondo from, Commerce Secretary said the US may force anyway to seek the information it wanted, if not fairly complied.
After TSMC’s revelation, the South Korean finance ministry announced to be preparing a similar report on Samsung, one of the world’s largest chip foundries, to be shared with the US Department of Commerce.