Microchip/semiconductor shortage

[Jimexpl]

I find it incredible that this has happened globally.
Surely the major manufacturers shoud be planning well ahead with their supply chains, even if they only use Just In Time for assembly?

On the Disco Sport we have on order, if we wated an electrically deployable tow bar, 3D camera or head up display it would no add an estimated 12 months onto the delivery. They've also dropped their cheaper engine options and have told dealers to stop taking new orders!
Some people have had a car on order for four months, only to now be told it will never be built, so either cancel the order or cough up £4k+ for the next model up.

BMW have removed their premium audio offerings from most models.

Peugeot have gone back to analogue dials

Intel believe the shortage could be for years

[dinny_g]

Geopolitical tensions with China, according to an article I read in the Guardian yesterday

[Jobbo]

Intel believe the shortage could be for years

Apple must be absolutely laughing about switching to their own processors.

[Mito Man]

Outsource everything to China they said. It'll be cheap they said...

[RobYob]

I liked the summary by LTT.
Semiconductor output is higher than ever, COVID only caused a relatively small disruption.
But there's Massively increased demand everywhere.

LTT video from March
Automotive specific at 3:26, Manufacturers released semiconductor capacity which was consumed by everyone else and they're struggling to get prioritised in the queue.

Samsung and TSMC are both building huge new semiconductor factories in the US, coming online around 2023...

[V8Granite]

This was an issue that Mr JCB himself mentioned about electric vehicles. The battery material is controlled by too few people and it creates a very high risk of massive inflation.

Huge companies aren’t a good thing in every sector.

Dave!

[Carlos]

I read something recently that a couple of big manufacturers are looking at delivering new cars with 1 remote key and delivering the 2nd at a later date

My wife's Kodiaq was originally coming Sept and a couple of weeks ago this shifted to Nov. I suspect its going to be 2022 !

[McSwede]

The company I work for buys a lot of microprocessors and were forward ordering and paying for stuff through 2023 at the moment. Some stuff has a 60-70 week lead time.

As mentioned previously, when car manufacturers stopped production as Covid kicked in the supply moved to things like consumer electronics. As car manufacturers ramped up production again the demand was outstripping supply with the added demand from the increased sale of hybrids and electric vehicles not helping the situation.

It's a massive problem for everyone and this is where it is advantageous to have very deep pockets and forward pay for product so you get it and don't get passed over. It'll be very difficult for smaller businesses I'm sure.

[Simon]

Intel believe the shortage could be for years

Apple must be absolutely laughing about switching to their own processors.

Apple don't make the processors though. They get them from the same fabs as everyone else. One wonders if they are paying a premium for their chips to receive priority service from the fabs.

[Jobbo]

Intel believe the shortage could be for years

Apple must be absolutely laughing about switching to their own processors.

Apple don't make the processors though. They get them from the same fabs as everyone else. One wonders if they are paying a premium for their chips to receive priority service from the fabs.

Seems Intel are behind the curve at switching to the fab that Apple use: https://www.ft.com/content/05206915-fd7 ... 60ce965bd9

[Simon]

Intel have their own fabs, but their process nodes have fallen a long way behind their competitors (their transistors aren't as small as other people's)

[Nathan]

I don't entirely believe the narative for the chip shortage and subsequent difficulties bringing everything back up to speed

This was an issue that Mr JCB himself mentioned about electric vehicles. The battery material is controlled by too few people and it creates a very high risk of massive inflation.

Huge companies aren’t a good thing in every sector.

Dave!

[Beany]

Intel have their own fabs, but their process nodes have fallen a long way behind their competitors (their transistors aren't as small as other people's)

That's kinda true and kinda not, but it's true to the extent that they're basically now bullshitting about their process node sizes in their marketing material.



It's pretty fucking pathetic, really.

[Beany]

I don't entirely believe the narative for the chip shortage and subsequent difficulties bringing everything back up to speed

This was an issue that Mr JCB himself mentioned about electric vehicles. The battery material is controlled by too few people and it creates a very high risk of massive inflation.

Huge companies aren’t a good thing in every sector.

Dave!

It takes about three years for a new-ground-broken chip fab - which is what's needed to keep up with the latest home working demands - to get up to full production speed.


It's very, very true. Silicon production at modern levels ( <40nm) is no joke and getting that setup going takes time and expertise that is not even remotely common. You can't just get someone experienced in extreme ultraviolet lithography manufacturing processes at the nanometre scale by putting up an ad on Indeed.

Demands has skyrocketed for silicon in the last two years, and it's simply not physically possible for the industry to keep up. I mean, if they could keep up with demand they could be making money hand over fist - way more than they already are - if they could.... So why aren't they?

[Simon]

Intel have their own fabs, but their process nodes have fallen a long way behind their competitors (their transistors aren't as small as other people's)

That's kinda true and kinda not, but it's true to the extent that they're basically now bullshitting about their process node sizes in their marketing material.



It's pretty fucking pathetic, really.

14nm++++++++++++++++++++++++++

[Nathan]

I appreciate that but I'd argue a lot of the demand is from OEMs doubling/trippling orders to cover existing shortfalls and then some

There has already been projections of a glut of semiconductors in 12 months time

I don't entirely believe the narative for the chip shortage and subsequent difficulties bringing everything back up to speed

This was an issue that Mr JCB himself mentioned about electric vehicles. The battery material is controlled by too few people and it creates a very high risk of massive inflation.

Huge companies aren’t a good thing in every sector.

Dave!

It takes about three years for a new-ground-broken chip fab - which is what's needed to keep up with the latest home working demands - to get up to full production speed.


It's very, very true. Silicon production at modern levels ( <40nm) is no joke and getting that setup going takes time and expertise that is not even remotely common. You can't just get someone experienced in extreme ultraviolet lithography manufacturing processes at the nanometre scale by putting up an ad on Indeed.

Demands has skyrocketed for silicon in the last two years, and it's simply not physically possible for the industry to keep up. I mean, if they could keep up with demand they could be making money hand over fist - way more than they already are - if they could.... So why aren't they?