Taiwan says tackling flea shortages needs Malaysia’s help

A 12 inch wafer is seen at Taiwan Semiconductor Manufacturing Co. (TSMC) in Hsinchu on June 15, 2010. REUTERS / Pichi Chuang

TAIPEI, Oct. 1 (Reuters) – Malaysia needs Malaysia’s help in addressing the global automotive semiconductor shortage, especially in packaging, an industry affected by COVID-19 restrictions in country, Taiwanese Minister of Economy Wang Mei-hua said.

Taiwan, as a major producer of chips, has been at the center of efforts to resolve the shortage, which has slowed down auto factories around the world.

Speaking in an interview Thursday night with his ministry, Wang told Reuters that Taiwan alone cannot solve the problem because the supply chain is so complex.

“The bottleneck is actually in Southeast Asia, especially Malaysia, because for a while the factories were all closed,” she said.

The problem was particularly acute with the packaging of automotive chips, with Malaysian companies providing services not offered by Taiwanese companies, Wang added.

“Now the focus is on Malaysia to resume production as soon as possible. I know Malaysia started to restore its production capacity in early September, and now the production capacity has returned to around 80%, so if his ability can return slowly, this problem can be treated slowly. “

Malaysia is home to suppliers and factories serving semiconductor manufacturers such as STMicroelectronics (STM.BN) and Infineon (IFXGn.DE) in Europe, as well as major automakers such as Toyota Motor Corp (7203.T) and Ford Motor Co (FN).

The country accounts for 13% of the world’s chip packaging and testing, and 7% of the global semiconductor trade passes through Malaysia, with some added value at local factories and the chips being combined with other parts before final shipment.

Global demand for chips from Malaysia still exceeds supply after an increase in COVID-19 cases disrupted production at a time when automakers and manufacturers of phones and medical equipment ramp up production, an industry official said in August. Read more

Reporting by Ben Blanchard, Yimou Lee and Jeanny Kao; Editing by William Mallard

Our Standards: The Thomson Reuters Trust Principles.

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