Kyoshea Posted March 23, 2021 Share Posted March 23, 2021 I cannot believe this small item is shutting down assembly lines all over. Why can’t Ford press Washington to allocate inventory? I read all about how since auto demand was down auto didn’t place large orders and their allocation went to computers and gaming systems that were in hot demand due to COVID work from home stuff. I call bs. Ford is a global player. There isn’t 1 f350 on a dealer floor plan within 30 miles of me. There is huge demand for these 80k trucks and they are shutting down a shift? Quote Link to comment Share on other sites More sharing options...
slemke Posted March 23, 2021 Share Posted March 23, 2021 The shortage isn’t just automotive chips. Something happened to disrupt the supply. I’m not sure where the chips went. Automotive is short, cell phones are short (Qualcomm reported it in their earnings report). Nvidia can’t meet demand..not sure if their chip shipments are down, I haven’t looked. So it is a widespread problem beyond just Automotive. Second, there are very few fabs in the US, so it is an international issue. We can’t just demand chips get allocated a certain way and expect results. In order to get more allocation, automakers will likely need to increase how much they are willing to pay. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted March 23, 2021 Share Posted March 23, 2021 I don't know if it's accurate, but I assumed it's simply because things shut down for so long that there's just a backlog of production vs. demand? 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted March 23, 2021 Share Posted March 23, 2021 As I understand it, there's eight major chip plants in China but only one produces automotive chips. Last year, there was a huge increase in demand for home entertainment chips and because vehicle production was subdued, the Chinese made a decision to divert resources away from the automotive plant and to the other seven plants. When automotive production came back on line, supply was limited. Quote Link to comment Share on other sites More sharing options...
twintornados Posted March 23, 2021 Share Posted March 23, 2021 CREE is building a chip fab plant here in Central NY not even 10 miles from me....interesting times indeed for the Mohawk Valley... https://www.cree.com/mohawk-valley-fab 1 Quote Link to comment Share on other sites More sharing options...
paintguy Posted March 23, 2021 Share Posted March 23, 2021 President Biden calling Presidents of Frito-Lay and UTZ to step up under defense production act! 10 Quote Link to comment Share on other sites More sharing options...
Dewster2 Posted March 23, 2021 Share Posted March 23, 2021 ? Quote Link to comment Share on other sites More sharing options...
lfeg Posted March 23, 2021 Share Posted March 23, 2021 Several parts to this problem. Many of the chip fab plants are overseas and have many other potential customers who are willing to pay more, but also are buying higher value chips that make more money. Automakers cut production a year ago, and as a part of that cancelled many orders so they did not have to keep unused chips on hand. That production then shifted to higher value chips. And the purchasing policies of some automakers do not help. Always demanding rock bottom prices, and price cuts throughout the purchase contract makes you less attractive as a customer, especially when supplies are tight. 1 1 Quote Link to comment Share on other sites More sharing options...
paintguy Posted March 23, 2021 Share Posted March 23, 2021 3 minutes ago, lfeg said: Several parts to this problem. Many of the chip fab plants are overseas and have many other potential customers who are willing to pay more, but also are buying higher value chips that make more money. Automakers cut production a year ago, and as a part of that cancelled many orders so they did not have to keep unused chips on hand. That production then shifted to higher value chips. And the purchasing policies of some automakers do not help. Always demanding rock bottom prices, and price cuts throughout the purchase contract makes you less attractive as a customer, especially when supplies are tight. , Some reject the "America First" policy. Don't for a minute think there isn't a China first, Japan first or Korea first policy. Maybe not articulated, but firmly in place. Don't forget Japanese companies are tightly integrated with suppliers. Korean, notably Hyundai, notably is a conglomerate that has interest in chip manufacturing. 1 Quote Link to comment Share on other sites More sharing options...
hoss96racing Posted March 23, 2021 Share Posted March 23, 2021 this has been brewing for years. I work for an automotive supplier and we have been having issues getting chips for years now. Everything needs them. I make power window switches and they have chips with software. Just about anything in the car needs a chip. 1 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted March 23, 2021 Share Posted March 23, 2021 3 hours ago, paintguy said: President Biden calling Presidents of Frito-Lay and UTZ to step up under defense production act! National Potato Chip Day was last week on March 14. Looks like the President is taking the whole chip thing seriously! ? Quote Link to comment Share on other sites More sharing options...
HotRunrGuy Posted March 23, 2021 Share Posted March 23, 2021 21 minutes ago, rperez817 said: National Potato Chip Day was last week on March 14. Looks like the President is taking the whole chip thing seriously! ? I'll be back in a few, headed to Costco to stock up,,,,, HRG 5 Quote Link to comment Share on other sites More sharing options...
slemke Posted March 24, 2021 Share Posted March 24, 2021 9 hours ago, rperez817 said: National Potato Chip Day was last week on March 14. Looks like the President is taking the whole chip thing seriously! ? What? We have to double up on PI day? Guess I should have made a frito pie. 2 Quote Link to comment Share on other sites More sharing options...
theoldwizard1 Posted March 25, 2021 Share Posted March 25, 2021 The only thing that will get more ICs in the hands of the electronic suppliers for the automotive companies in the short term is a reduction in demand to ICs in consumer goods and that is NOT going to happen ! TSMC is the worlds largest (and arguably the BEST) IC manufacturer. Apple buys most of their chips from TSMC and is willing to pay a premium price. THAT IS NOT GOING TO CHANGE ! Demand for Play Stations and X-boxes does not look like it is fading. UHD televisions is consuming a lot of silicon also. Last, the auto industry has gone INSANE with small electronic modules ! Dozens and dozens per car. It make you wonder if they are really "cost effective" or are there just to "catch the customers eye". TSMC is building a large factory in AZ, but it will likely take 3-5 years before it is up to full production. 2 1 Quote Link to comment Share on other sites More sharing options...
Gurgeh Posted March 26, 2021 Share Posted March 26, 2021 This Cars.com article says that even with the current chip shortage -- which means higher prices and less selection available at dealerships -- it is still better to buy now than wait, as chip-shortage-fueled automotive production cuts will get worse before they get better. See: https://www.cars.com/articles/global-microchip-shortage-makes-now-the-time-to-shop-for-cars-432067/ 1 1 Quote Link to comment Share on other sites More sharing options...
rmc523 Posted March 26, 2021 Share Posted March 26, 2021 5 hours ago, Gurgeh said: This Cars.com article says that even with the current chip shortage -- which means higher prices and less selection available at dealerships -- it is still better to buy now than wait, as chip-shortage-fueled automotive production cuts will get worse before they get better. See: https://www.cars.com/articles/global-microchip-shortage-makes-now-the-time-to-shop-for-cars-432067/ Sure, assuming what you want is even available. 1 Quote Link to comment Share on other sites More sharing options...
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