Microchip Shortage Not Ending Soon

[Evolvd]

https://www.motortrend.com/news/for...81D4E35606AE144A2F56AAF61793988ED51E3C6CF0138

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[FreePenguin]

I just read Playstation is attempting to redesign the ps5 to use less silicone due to shortage. It’s getting real. Every piece of market is struggling.

 

[ice445]

I'm glad I bought my car before all the craziness popped off, lol. Funny how easily the balance of our society was upset by some germs.

 

[JCFoster]

More like bad media and scared politicians.

 

[Hack]

Right. I was going to say that regulations and government printing money are what caused most of the problems.

 

[ice445]

Right. I was going to say that regulations and government printing money are what caused most of the problems.

It's true. So many people got free money they didn't need, especially families. All that free money and nothing to spend it on other than hobbies....and yeah. Shortages were guaranteed really.

 

[Hack]

It's true. So many people got free money they didn't need, especially families. All that free money and nothing to spend it on other than hobbies....and yeah. Shortages were guaranteed really.

The news says that personal income increased by 21% last month. Just insane.

 

[FreePenguin]

I got the stims, but my groceries ate them up. BRB my friends sister got like 8k from her and her kids and husband etc

they blew in like a month on stupid crap like nikes etc. big screen, to replace the old big screen. Keep in mind, they live check to check.

 

[Jaymar]

That's not exactly how any of that really works. The chip industry is just like every other production industry. It follows supply and demand and in order to scale supply there needs to be a guarantee of future demand because an increase in supply requires massive investment in capital on the part of the chip manufacturer. Just because there is a small bump in demand the chip producers aren't going to make those capital investments in already aging process nodes just to end up flooding the market and reducing the price on themselves. The current demand is higher than supply and you are seeing that adjustment made to price to smooth it out, that leaves industries that are already on tight margins like the automotive industry out in the cold until we get over the current hump. If that hump was projected to last you can damn well bet that the producers of chips would increase their production ability to get in on all that lost money since it is a very competitive market.

With that being said, I believe there is another factor in the chip shortage as well. With the uber-competitive market that the industry has become the great race to increasingly smaller process nodes and the profit that waits there for the manufacturer that gets to it has led to an acceptance of increasingly smaller acceptable rates of yield from the manufactures themselves since the profit outweighs the decrease in efficiency. With that scenario playing out you will also see chip manufacturers basically getting less product with same amount of work/materials being put in than they got before. If you look at just how small the features on these chips are getting you'll see why it is getting harder and harder to make progress every time we go another step smaller.

Long story short, it won't last as long as you think and things are better today than they have been on any day before. It just looks bad when you look at the small aspect that affects you today as the markets align to each others demands. The free market is alive and well in this industry.

 

[Evolvd]

Ford isn’t the only one having these issues either, apparently Chevy is also having delays.

 

[Gregs24]

The news says that personal income increased by 21% last month. Just insane.

This is a global problem and I'm quite sure personal income rising by 21% (in the US if it is true) last month didn't cause a problem that has been going on for months.

 

[Gregs24]

It's true. So many people got free money they didn't need, especially families. All that free money and nothing to spend it on other than hobbies....and yeah. Shortages were guaranteed really.

What a sheltered world you live in!

 

[Gregs24]

Ford isn’t the only one having these issues either, apparently Chevy is also having delays.

It's a global problem and not just car makers. Problem will not go away for a year or so at least as manufacturing capacity takes a long time to set up.

 

[ice445]

What a sheltered world you live in!

I'm not sure what way you took that comment, but it wasn't implying that nobody needed the money, lol. I'm just saying that in order to make it fair, many people who didn't need it also got it too. Including myself. I sure didn't complain, but for many people, getting money for free that you don't absolutely need for expenses means buying something for your hobbies, or another unneeded expense. Not even implying there's something wrong with that either. But it definitely stressed the hobby supply lines. Not even really talking about computers specifically. If you're into outdoorsy stuff, a lot of specialty items are on backorder. Same with off road parts for overlanding/trail rigs. Many other things. Appliances too. I guess a lot of people decided to upgrade their fridge or stove, which is awesome, except now a lot of those are on backorder or unavailable. Oh, and I'm not even touching the lumber or home improvement stuff that's way overpriced now.

I only even mentioned the family part because kids increased the allowance up to $6800 I believe? It's not that I thought families shouldn't be getting money, but they just get a lot *more*, which means more spending power should they choose to go that route.

 

[Evolvd]

I certainly didn’t need the stimulus checks but I can only speak for myself and my family. I’d rather my children and grandchildren not be saddled with our national debt....and that is completely apolitical.
Back to the subject, I think it’s a good time to be a chip maker lol, they see

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