The global chip shortage continues to be a matter of great concern for carmakers, and Ford Motor has confirmed the situation. General Motors is the other company that speaks about the prevailing condition. The mentioned companies say that the matter has grown rather serious compelling them to change their production plans. For example, they intend to curtail their production casting blame on the shortage of chips. The above companies aren’t the only ones feeling the pinch because Toyota Motor Corp (NYSE: TM) is also making a drastic move.
It isn’t all doom and gloom, and that is considering that Intel and other chip developers want to ramp up activities to make chips available. The company says it will spend about $95 billion in the set up of new chip-making facilities in Europe. It considers it an obligation to respond to the ongoing race to ramp up manufacturing activities at a time when the world experiences a chip-supply crunch.
It was on Tuesday that the company’s Chief Executive Officer Pat Gelsinger spoke about their plans to set up two new factories in Europe. He anticipates further expansions, which would result in the company spending more. The leader applauds the company’s plans, outlining that they are crucial in catering for the significant demand for semiconductors.
Taiwan Semiconductor to ramp up production
Intel’s rival Taiwan Semiconductor Mfg. Co. Ltd (NYSE: TSM) happens to be the biggest contract chipmaker globally, and it has also spoken about its plans. The business behemoth says it will bolster its production ton capacity significantly. It intends to channel about $100 billion over the next three years to take the production capacity a notch higher.
The future looks bright for the chip developers, and that is considering the anticipated expansion of the chip market. Reports indicate the chip market might double to hit a figure of about $115 billion.