Jump to content

Microchip Shortage Downtime


Recommended Posts

4 hours ago, pig9r said:

Definitely a national security issue.  Remember Huawei and their ban in the US (and other countries) over national security issues in 2019?  

Again, let’s see what the current administration does.  Trump administration also blocked the Broadcom takeover of Qualcomm for similar security issues.  Broadcom had promised to locate in the US to close an acquisition.  I never heard if they followed through on it.

Link to comment
Share on other sites

4 hours ago, FordBuyer said:

Intel makes most of its semiconductors in U.S. and its stock lately has been hammered because it hasn't gone overseas even though earnings and revenue is way up. The new CEO the other day said he wants to keep production here, and Intel stock got hammered again after blow out earnings report and dividend increase. Go figure. I tell should be a $150 stock, but it isn't because it hasn't gone overseas.

Hmmm,  might be time to look into Intel.  

Link to comment
Share on other sites

4 hours ago, rperez817 said:

 

The current administration is much more likely to support the U.S. semiconductor industry than the previous one, especially on the basis of national security. The previous U.S. President vetoed the 2021 National Defense Authorization Act that included Title XCIX, “Creating Helpful Incentives to Produce Semiconductors for America". As a result, Semiconductor Industry Association pushed Congress to override the veto, which they did. Congress Needs to Override President’s Veto of NDAA - Semiconductor Industry Association (semiconductors.org)

Problem was what else was in the bill.  Previous administration seemed pretty pro business and support American jobs to me.  
 

US legislation is like cable packages, some good and a load of crap you have to take along with it.

  • Like 1
Link to comment
Share on other sites

28 minutes ago, slemke said:

Problem was what else was in the bill.  Previous administration seemed pretty pro business and support American jobs to me.  
 

US legislation is like cable packages, some good and a load of crap you have to take along with it.


 

Quote

Trump said he vetoed the annual National Defense Authorization Act, or NDAA, because it “fails to include critical national security measures, includes provisions that fail to respect our veterans and our military’s history, and contradicts efforts by my Administration to put America first in our national security and foreign policy actions.”

 

  • Like 3
Link to comment
Share on other sites

41 minutes ago, slemke said:

Again, let’s see what the current administration does.  Trump administration also blocked the Broadcom takeover of Qualcomm for similar security issues.  Broadcom had promised to locate in the US to close an acquisition.  I never heard if they followed through on it.

 

Broadcom is a U.S. company headquartered in San Jose, California. 

Link to comment
Share on other sites

57 minutes ago, rperez817 said:

 

Broadcom is a U.S. company headquartered in San Jose, California. 

Apparently they did got through with it.  In 2017, the parent company Avago was based in Singapore.  As part of the deal to acquire Brocade, it was incorporated in Delaware as Broadcom, inc with headquarters in San Jose.  Hock Tan still runs the show and stock ticker is still Avago.

  • Thanks 1
Link to comment
Share on other sites

Intel is having process issues-they haven't matched TMSC or AMD in the .07nM chip process. 
 

Supply chain issues are only going to get worse-it’s big issue with the DOD and getting compromised chips that are almost impossible check for issues with. The DOD is already facing major issues with suppliers shrinking due to lack of demand and other problems that manufacturers are facing. It also doesn’t help that we are using weapon systems that where designed 30-40 years ago for the most part, that are microelectronics and not IC based. 

  • Like 1
Link to comment
Share on other sites

42 minutes ago, silvrsvt said:

Intel is having process issues-they haven't matched TMSC or AMD in the .07nM chip process. 
 

Supply chain issues are only going to get worse-it’s big issue with the DOD and getting compromised chips that are almost impossible check for issues with. The DOD is already facing major issues with suppliers shrinking due to lack of demand and other problems that manufacturers are facing. It also doesn’t help that we are using weapon systems that where designed 30-40 years ago for the most part, that are microelectronics and not IC based. 

Intel struggled for a long time on 10nm.  They may still be working on it or just moved on to 7nm.  Problem is tsmc, Samsung and global foundries (Amd and IBM sold their fabs off to Global Foundries) have moved on to 5nm and whatever comes next.  Intel used to be the leader when PC sales drove the chip market.  Now it is mobile and automotive driving the volumes and the associated fab houses are reaping the rewards.

 

Dod relies on trusted fabs.  If the Fabs in the US aren’t kept up to date and competitive worldwide it will become a severe national security issue.  Certainly don’t want to send IP to a fab in China where it can be duplicated and used against us.  Previous administration seemed to recognize this.  Too early to tell if the current administration will continue and even ramp up support for US industries critical to our independence.  It isn’t just semiconductors, medical supply equipment is another industry that was off shored and made us vulnerable to world supply shortages.  We would have been in much worse shape if Ford and others hadn’t stepped up to manufacture the supplies needed and work with traditional suppliers such as 3M to improve their output.  The fewer plants Ford has in the US, the more difficult those heroics becomes.

  • Like 3
  • Thanks 1
Link to comment
Share on other sites

19 hours ago, rperez817 said:

 

Idaho along with its neighbor Oregon are among the leading U.S. states for semiconductor device manufacturing. I think ON Semiconductor operates fabs in Nampa (near Boise) and in Pocatello.

 

You got it! ON Semiconductor is located just down the road from me.

  • Thanks 1
Link to comment
Share on other sites

11 hours ago, slemke said:

DOD relies on trusted fabs.  If the Fabs in the US aren’t kept up to date and competitive worldwide it will become a severe national security issue.  Certainly don’t want to send IP to a fab in China where it can be duplicated and used against us.  

 

Yeah this was a major part of my day job-I worked for a microelectronics company and now I work as DOD Civilian.

 

Supply chain issues are a huge deal now...my old job was going through hell to get the paperwork for items they needed. They often dealt with Mom and Pop operations that provided the raw materials to them and they where drying up because there was no demand or profit to be made-the whole manufacturing base is shrinking because of off shoring and Defense related companies keep merging and your pool of being able to get something for the military shrinks with it so that you can't keep pricing down. Our biggest profit maker at the factify I worked at was based on a design that was old as I am (46 years old)...I decided to leave after a year and half it going from 120 people down to 90 and I think they are at 67 people now the last time I checked. 

Link to comment
Share on other sites

Made materials for electronics, mostly for PCB and leadframes. Saw our domestic customers fall away as foreign business increased. Started up a plant in Taiwan making the same materials as the US plant. Saw the handwriting on the wall and left. My former employer shut down the domestic operation. Any wonder that the technical know-how is leaving?

Link to comment
Share on other sites

42 minutes ago, paintguy said:

Any wonder that the technical know-how is leaving?

 

The big issue is that US students aren't making up a large portion of STEM classes in advanced education-its mostly foreign students making the rolls up and it seems like most US students are going into finance and other majors that aren't as "hard".

 

I had coworkers who's sons went to Stevens and another technical college in NJ and they said that 95% of their tech classes where foreign students. Both them more or less wrote their ticket after graduating and found good paying jobs right out of school because they where citizens and it was easy for them to get clearances if needed. 

Link to comment
Share on other sites

3 minutes ago, silvrsvt said:

 

The big issue is that US students aren't making up a large portion of STEM classes in advanced education-its mostly foreign students making the rolls up and it seems like most US students are going into finance and other majors that aren't as "hard".

 

I had coworkers who's sons went to Stevens and another technical college in NJ and they said that 95% of their tech classes where foreign students. Both them more or less wrote their ticket after graduating and found good paying jobs right out of school because they where citizens and it was easy for them to get clearances if needed. 

Have a Masters in Engineering. My  back up plan was a Business Administration (Bachelors or Masters). While I made reasonable reward, the MBA types made twice as much with about half the effort...

Link to comment
Share on other sites

7 minutes ago, paintguy said:

Have a Masters in Engineering. My  back up plan was a Business Administration (Bachelors or Masters). While I made reasonable reward, the MBA types made twice as much with about half the effort...

 

But those MBA positions are often those that are cut in corporate downsizing.

Link to comment
Share on other sites

EE Times reports that Tesla and BEV focused startup companies are in a better position that the incumbent automakers amid the semiconductor device crunch. Auto Industry Chip Shortages Reflect Wider Shortfall | EE Times 

 

"The shortages may benefit a few automakers such as Tesla, according to an investor who spoke to EE Times.

Electric vehicle makers may gain a competitive advantage over combustion-engine car companies because they are better at managing their supply chains and have probably secured chip supplies ahead of the shortages, according to a fund manager who owns shares in Tesla. He requested anonymity because he is not authorized to speak on behalf of his fund."

Link to comment
Share on other sites

  • ice-capades changed the title to Microchip Shortage Downtime
4 hours ago, rperez817 said:

EE Times reports that Tesla and BEV focused startup companies are in a better position that the incumbent automakers amid the semiconductor device crunch. Auto Industry Chip Shortages Reflect Wider Shortfall | EE Times 

 

 

 


sounds like a hedge fund that doesn’t want to get caught with its shorts down like what happened with GameStop 

Link to comment
Share on other sites

6 hours ago, ice-capades said:

 

But those MBA positions are often those that are cut in corporate downsizing.

True, but reminds me of one of our former CEOs who left under less than favorable circumstances. Got a job with a finance company as he had "experience" in acquisitions. All his acquisitions have been sold for pennies on the dollar. At least we are very good at recycling executives. 

Link to comment
Share on other sites

3 hours ago, silvrsvt said:

sounds like a hedge fund that doesn’t want to get caught with its shorts down like what happened with GameStop 

 

Any fund manager would be silly to stake short positions now on TSLA, NIO, or WKHS. Going short would make more sense on NKLA, FSR, or HYLN.

 

Generally speaking, Tesla and the BEV/FCEV startups operate more like consumer electronics companies. No surprise their supply chains have an advantage over incumbent automakers when it comes to securing microchips.

Link to comment
Share on other sites

Per the CNBC article earlier today...  "Ford is cutting production at plants in Michigan and Missouri that produce its profitable F-150 pickup trucks due to a global semiconductor chip shortage."

 

Any word on the same thing happening with the Super Duty plant(s)?

Link to comment
Share on other sites

40 minutes ago, AggieDad said:

Per the CNBC article earlier today...  "Ford is cutting production at plants in Michigan and Missouri that produce its profitable F-150 pickup trucks due to a global semiconductor chip shortage."

 

Any word on the same thing happening with the Super Duty plant(s)?

It seems to be cascading down so that eventually every p)ant will be affected. Since F-Series is the profit king, it has to be getting bad. Dearborn down to one shift when dealers are screaming for them is not good. They said today problem will not be solved until summer. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...