Taiwan Semiconductor Manufacturing Co Ltd (TSMC) said on Friday that it has increased its 2021 output for a key component for automotive semiconductors by 60per cent compared with last year, amid a global chip shortage.

TSMC, the world's largest contract chipmaker, said it had taken "unprecedented actions" to help automakers.

That includes reallocating capacity to other industries that are also experiencing "stressfully high demand due to the acceleration of digital transformation".

"With a fixed short-term capacity, TSMC managed to increase 2021 output for MCUs (microcontrollers), one of the key components in automotive semiconductor products, by 60 percent over the 2020 level," it said.

This represents a 30 percent increase over the 2019 pre-pandemic level, the company added.

Now it become clear that lot of auto chip manufacturers got orders to stop production, to allow transfer to TSMC, as big prices of such chips allowed TSMC to get extra funds that it needs for 4nm and further processes.