Malaysia needs to help resolve global auto chip shortage, says Taiwan

The global semiconductor shortage that is affecting carmakers around the world is certainly a crisis that can only be compounded by a once-in-a-generation pandemic. Though Malaysia is slowly resuming its production after months of lockdowns, the shortage will take some time to recover.

In a report by Reuters, Taiwan Economy Minister, Wang Mei-hua said that Malaysia’s help is needed to resolve the global shortage of auto semiconductors, especially in packaging.

Also read: As the chip shortage issue continues, what are car companies doing to adapt?

Taiwan, being the world’s largest chip producer, has been front and centre of efforts in resolving the global chip shortage. Wang told reporters that Taiwan alone could not sort the issue as the supply chain is complex.

She added that the problem was especially acute with auto chip packaging, with companies in Malaysia providing services not offered by Taiwanese firms.

Also read: Failure to contain Covid-19: Chip manufacturers mull exiting Malaysia

However, Wang said that with Malaysia resuming production since early September, she thinks that the chip shortage issue could be slowly dealt with.

Malaysia Semiconductor Industry Association President, Wong Siew Hai, told the news organisation that the major Malaysian semiconductor manufacturers are already running at full capacity to supply the auto industry.

“Adding capacity will take time, with most available only next year,” said Wong.

Also read: Global chip shortage could remain until 2022, warns Bosch CEO

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

Also read: Currently unable to cope with demand, but expect Malaysian chip makers to improve supply, expert says