Chip shortage - A house of cards.

[Cyberty]

The chip shortage affects practically all electronic devices. Cell phones, vehicles, televisions, manufacturing devices, computers, ovens, hvac, distribution, refrigeration, medical, drilling, fracking, etc.

Practically everything that uses electricity uses some type of chip. All chips are in shortage, including the most complex cpu type and the tiny 10 cent controller chips.

In order to ramp up the production of these chips, they chip manufacturers need to purchase more of the very expensive machines that make the chips.

The two largest chip manufacturers are Taiwan Semiconductor and Samsung. However, they don’t make the machine that makes the chips. They buy these machines from companies like Applied Materials or Tokyo Electron. These machines are very expensive, complex to build, and have a long lead time.

Taiwan Semiconductor and Samsung have ordered more of these machines to increase chip production.

Unfortunately, the machine makers also need a large amount of chips to incorporate in these complex machines. They can’t get the chips either.

So the machines that build the chips have to have the same chips in them to be built. A circular supply chain.

All complex technology depends on the below cards that keep them in place.

 

[hmt5000]

Good thing we are throwing Taiwan and Israel under the bus. Those chips go and the internet goes. Maybe the next gen won't be complete faggits like everyone seems to be now... even 80yo retired Iron Workers have become complete pansies with fuckbook.

 

[America 1st]

The chip shortage affects practically all electronic devices. Cell phones, vehicles, televisions, manufacturing devices, computers, ovens, hvac, distribution, refrigeration, medical, drilling, fracking, etc.

Practically everything that uses electricity uses some type of chip. All chips are in shortage, including the most complex cpu type and the tiny 10 cent controller chips.

In order to ramp up the production of these chips, they chip manufacturers need to purchase more of the very expensive machines that make the chips.

The two largest chip manufacturers are Taiwan Semiconductor and Samsung. However, they don’t make the machine that makes the chips. They buy these machines from companies like Applied Materials or Tokyo Electron. These machines are very expensive, complex to build, and have a long lead time.

Taiwan Semiconductor and Samsung have ordered more of these machines to increase chip production.

Unfortunately, the machine makers also need a large amount of chips to incorporate in these complex machines. They can’t get the chips either.

So the machines that build the chips have to have the same chips in them to be built. A circular supply chain.

All complex technology depends on the below cards that keep them in place.

Good.

Hopefully it leads to those chips being made in the states as a military necessity along with the rare earth minerals being mined here as well.

Fuck global supply chains. America 1st bitches!

 

[N. Pappagiorgio]

Buy AMD and MU now.

 

[shiv]

Buy AMD and MU now.

@ekreb

 

[Crich73]

Buy AMD and MU now.

MU?

 

[ChicagoFats]

The chip shortage affects practically all electronic devices. Cell phones, vehicles, televisions, manufacturing devices, computers, ovens, hvac, distribution, refrigeration, medical, drilling, fracking, etc.

Practically everything that uses electricity uses some type of chip. All chips are in shortage, including the most complex cpu type and the tiny 10 cent controller chips.

In order to ramp up the production of these chips, they chip manufacturers need to purchase more of the very expensive machines that make the chips.

The two largest chip manufacturers are Taiwan Semiconductor and Samsung. However, they don’t make the machine that makes the chips. They buy these machines from companies like Applied Materials or Tokyo Electron. These machines are very expensive, complex to build, and have a long lead time.

Taiwan Semiconductor and Samsung have ordered more of these machines to increase chip production.

Unfortunately, the machine makers also need a large amount of chips to incorporate in these complex machines. They can’t get the chips either.

So the machines that build the chips have to have the same chips in them to be built. A circular supply chain.

All complex technology depends on the below cards that keep them in place.

I wonder 1) how long the supply shortage will last? 2) how to make money off the situation.

I think the shortage will sort itself out in about a year. Late 2022 from what I am reading.

Not sure how to make money off the situation. Will have to think about it.

 

[quickfeet]

I wonder 1) how long the supply shortage will last? 2) how to make money off the situation.

I think the shortage will sort itself out in about a year. Late 2022 from what I am reading.

Not sure how to make money off the situation. Will have to think about it.

Just stream of consciousness here:

It seriously is one of the many incredibly odd things going on right now. Something tells me military influence is involved.

With the proliferation of 3D printers coming, you have to wonder if there will be a new generation of technology coming behind it where people can just print their “chips” at home. Of course initially the chips printed at home would be generations behind what comes out of industry, but how fucking cool would it be to print your own PC parts. To some degree, this is a matter of “when” not “if”

“Chips” are really just a common name for a VLSI (very large scale integration) circuit that contains thousands of MOSFETs (metal oxide semiconductor field effect transistor).

Very-large-scale integration - Wikipedia

en.wikipedia.org

MOSFET - Wikipedia

en.m.wikipedia.org

 

[quickfeet]

 

[quickfeet]

 

[BurntJ]

@ekreb

Really....?....is that what this board is gonna become.

a bunch penny stock faggits diarrhea ing all over the Main Forum.

 

[poke2001]

I wonder 1) how long the supply shortage will last? 2) how to make money off the situation.

I think the shortage will sort itself out in about a year. Late 2022 from what I am reading.

Not sure how to make money off the situation. Will have to think about it.

About 1 year is right. It’s a real bitch right now if you are in electronics AND oil and gas, trying to ramp up for the recovery.

 

[shiv]

Really....?....is that what this board is gonna become.

a bunch penny stock faggits diarrhea ing all over the Main Forum.

I was being ironic

 

[Cre8ive]

There is no chip shortage. @Cyberty - This is a classic example of supply chain misinformation campaign to artificially impact global stock markets and further pad well-heeled pockets.

Here are the world's leading chip makers and they are doing just fine:
1. Intel
2. Samsung
3. Taiwan Semiconductor
4. SK Hynix
5. Broadcomm
6. Qualcomm
7. Micron Technology
8. Applied Materials
and more...

 

[N. Pappagiorgio]

MU?

Micron Technology, Inc. designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. It offers memory and storage technologies, including DRAM, NAND, NOR, and 3D XPoint memory under the Micron and Crucial brands, as well as through private labels. The company provides memory products for the cloud server, enterprise, client, graphics, and networking markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; other discrete storage products in component and wafer forms for the removable storage markets, as well as 3D XPoint memory products; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

 

[Cyberty]

There is no chip shortage. @Cyberty - This is a classic example of supply chain misinformation campaign to artificially impact global stock markets and further pad well-heeled pockets.

Here are the world's leading chip makers and they are doing just fine:
1. Intel
2. Samsung
3. Taiwan Semiconductor
4. SK Hynix
5. Broadcomm
6. Qualcomm
7. Micron Technology
8. Applied Materials
and more...

The shortage exists. And it is not due to the chip manufacturers decreasing production. So you are correct that the manurers are doing just fine. They are, in fact, doing great because of the increase in demand. It is not a supply side problem, they just can’t meet the new greater demand and their ability to add new production lines is hampered by the chip shortage.

The need for all these chips was created by the work from home situation. This resulted in record sales of computers, smart phone, tablets, etc. Reference Apples last earnings report to see how the sales have dramatically increased the last two quarters.

 

[Cre8ive]

The shortage exists. And it is not due to the chip manufacturers decreasing production. So you are correct that the manurers are doing just fine. They are, in fact, doing great because of the increase in demand. It is not a supply side problem, they just can’t meet the new greater demand and their ability to add new production lines is hampered by the chip shortage.

The need for all these chips was created by the work from home situation. This resulted in record sales of computers, smart phone, tablets, etc. Reference Apples last earnings report to see how the sales have dramatically increased the last two quarters.

I will certainly look more closely at the "work at home" situation but my first inclination is that there was a tremendous amount of inventory already in warehouses. My first thought is that the increased sales happened over time as the work at home scenario took root.

But again, due to covid, many healthy industries are facing shortages such as the home building market - it is as hot as it can be where i live and the cost of building materials have gone up over 30% across the board. My brother is a major home builder in the S.E. and he said even though prices are going up people are being as fast as they can!

 

[Cyberty]

I will certainly look more closely at the "work at home" situation but my first inclination is that there was a tremendous amount of inventory already in warehouses. My first thought is that the increased sales happened over time as the work at home scenario took root.

But again, due to covid, many healthy industries are facing shortages such as the home building market - it is as hot as it can be where i live and the cost of building materials have gone up over 30% across the board. My brother is a major home builder in the S.E. and he said even though prices are going up people are being as fast as they can!

Apple reported in their conference call that they did plan well and had a large inventory of chips. Had, is the key word. They then disclosed that the Mac and iPad production might not be able to meet demand because they have depleted their chip inventory.

I don’t think this is a long term problem. About a year for the market to adjust. Then the demand will slow and the manufacturers will have a problem with over scale.

 

[Crich73]

Buddy of mine got a job at a dealership. He started out as a porter but they moved him to salesperson after a month. Just spoke to him today for the first time in months and he said that the chip thing is nuts! Used cars (2017-2019) are selling for nearly as much when they were new. Inventory is low and he's scared about a few months from now when auctions dry up.

 

[ChicagoFats]

Buddy of mine got a job at a dealership. He started out as a porter but they moved him to salesperson after a month. Just spoke to him today for the first time in months and he said that the chip thing is nuts! Used cars (2017-2019) are selling for nearly as much when they were new. Inventory is low and he's scared about a few months from now when auctions dry up.

I dropped my car off at the dealership to get fixed and was shooting the shit with the rep. He said they normally have 150-175 f-150’s to choose from at any given time. Right now they have 1.

Supply squeeze is real.
1) increase led demand from stay at home
2) decreased supply because workers stayed home for many weeks during COVID which slowed it halted production.
3) all these businesses were practicing “just in time” inventory. It’s what was taught in business school forever, many didn’t plan for supply disruption. They were not using warehouses.

Supply crunch is real. Just look at the prices around you
@Cyberty