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A Bit of Good News in Ongoing Global Chip Crisis

by Guillaume Rivard
Photo: GlobalFoundries

Japanese semi-conductor maker Rohm Co. and automakers like Mercedes-Benz recently shared depressing views on the global chip shortage that affects a number of industries.

But today we have some encouraging news to report about, and it comes from another manufacturer of those precious electronic components.

According to Nikkei Asia, American multinational semiconductor company GlobalFoundries is on track to double its automotive chip output in 2021. It will spend an additional $6 billion USD (approx. $7.7 billion CAD) to ramp up production.

Photo: GlobalFoundries

Mike Hogan, Senior Vice President and General Manager of Automotive, Industrial and Multi-Market business at GlobalFoundries, told the weekly newsmag that they expect to expand capacity in 2022 and beyond. However, patience will still be required.

"It takes quite a while for new investments to turn into capacity, and the overall lead time for silicon [chips] to make it into the auto manufacturers is also quite long," he explained.

Earlier this year, Taiwanese manufacturer TSMC announced it was producing 60 percent more chips for the auto industry in 2021 than it did in 2020.

Vehicle assembly plants across North America continue to be largely impacted. For example, General Motors said last Thursday it was extending downtime at several crossover factories including CAMI in Ingersoll, Ontario, home of the Chevrolet Equinox. The site has been down since mid-July (after an initial five-month halt in the first half of the year) and will remain that way at least through October 15.

Photo: Chevrolet
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