The New Shortage!

[LSUDad]

A Bike Shortage, go figure. Along with the Computer Chip shortage. 

[houtiger]

Yep.  A couple who are friends of mine went to a bike store in Houston to buy two bikes.  No bikes in the store.  They ordered their bikes, they will get a call when they come in.  No ETA.

[LSUDad]

18 minutes ago, houtiger said:

Yep.  A couple who are friends of mine went to a bike store in Houston to buy two bikes.  No bikes in the store.  They ordered their bikes, they will get a call when they come in.  No ETA.

The chip shortage is affecting new and used car sales. Since I have friends and relatives that own dealerships, I’ve had a few friends and relatives asking if I can get them new cars. I got them a new RX 350 Lexus and a RAV4. When at the Toyota dealership, I asked my friend the owner about this. My cousin had to wait a week for her RAV4, they didn’t have one on the lot, they also didn’t have a new Tacoma on the lot. 
What most don’t know, cars have a number of chips in them. This shortage will continue for at least two more years, maybe longer. 

[houtiger]

All of the US manufacturing industry bought into "Just in Time" manufacturing.  They don't hold inventory.  Based on orders they get, or manufacturers schedule, they expect their suppliers to hold the inventory and send it to them just in time.  It minimizes the manufacturers cost because he does not have his capital tied up in a non-productive process (holding inventory).  Buuuuuuttttttttt, if the supply chain gets disrupted, the manufacturer is dead in the water.

The other thing is the auto business is relatively new to the computer chip business.  It is NOT like the alternator business, or the battery business.  A new foundry to build chips cost a few billion dollars and takes at least 2 years to get up.  Then you have higher tech chips that go in computers, and lower tech chips that perform a specific function, like managing fuel injection flow in an engine, or anti-lock brakes.  But foundries don't change the type of chip they build because it is too costly.

In the pandemic, the auto companies cancelled their orders for chips, now they are getting back in the queue, in the back of the line.

[LSUDad]

But right now, everything is waiting on Chips/Processors. Everything else is there. 

[Herb]

On 6/24/2021 at 10:46 AM, LSUDad said:

But right now, everything is waiting on Chips/Processors. Everything else is there. 

And rental car companies are kicking themselves in the rear for liquidating large swaths of their inventory during the pandemic. People I know had to pay over $1,000 for a week car rental while on vacation.

[dachsie]

Add paint to the shortage list.  I cant get paint at Sherwin Williams right now

 

[LSUDad]

The chip shortage, Lays not involved. 
 

“TSMC, if you just have a look at market share, I believe manufactures around 50% of all semiconductors in the world.”

 

“TSMC and its South Korean rival Samsung are the only foundries capable of manufacturing the most advanced 5-nanometer chips.

TSMC is already gearing up for the next-generation 3-nanometer chips, that will reportedly start production in 2022.”

 

 

[dachsie]

On 8/5/2021 at 1:03 PM, LSUDad said:

The chip shortage, Lays not involved. 
 

“TSMC, if you just have a look at market share, I believe manufactures around 50% of all semiconductors in the world.”

 

“TSMC and its South Korean rival Samsung are the only foundries capable of manufacturing the most advanced 5-nanometer chips.

TSMC is already gearing up for the next-generation 3-nanometer chips, that will reportedly start production in 2022.”

 

 

This shortage is affecting my profession.  Hearing aids are now rechargeable and because of the chip shortage, they cant manufacture the chargers for them and some of the other accessories.