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A Microchip Might Be Why the New Car You Want Is Hard to Locate
https://www.msn.com/en-us/autos/news/a-microchip-might-be-why-the-new-car-you-want-is-hard-to-locate/ar-BB1cOe6S?ocid=msedgntp

January 16, 2021
Colin Beresford



- Automakers are facing a supply shortage of semiconductors, the technology used to make microchips, and are being forced to pause production on certain vehicles.

- In North America, Ford, FCA, Toyota, and Subaru have all had to adjust production schedules; outside North America, VW, Nissan, and Honda have had to do the same.

- The supply disruption could ultimately impact the availability of the affected vehicles, industry analysts told C/D.

Even as automakers adapted to the restraints of a pandemic, the challenges faced by suppliers prevented a smooth return to production after the six-week shutdown in the spring. And although 2020 is now behind us, many of the challenges persist. Now a microchip shortage is forcing automakers to adjust production schedules and, in some cases, pause production once again.

With the consumer electronics industry claiming more and more chips to fulfill increased demand for electronics, automakers are lacking one small but crucial component to build their cars. "Semiconductors are becoming much more important across the entire value chain for a vehicle, and such is the case in more expensive vehicles with more technology, but in particular for electric vehicles," Guarav Gupta, vice president analyst at consulting firm Gartner, told Car and Driver. The potential for a shortage of semiconductors—the technology from which a microchip is made—was first noticed in December, as warnings came from automotive suppliers Continental and Bosch.

more at link
 

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Same questions I had, why is GM ok? Probably just different supply chains that are having less issues.
 

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Same questions I had, why is GM ok? Probably just different supply chains that are having less issues.
Pretty much all the same supply chain. GM probably just had dibs. Chips take around 90 days to bake, and orders are usually pre-ordered way in advance. another take on the problem is here. https://finance.yahoo.com/news/trumps-china-tech-war-backfires-051226063.html SMIC is/was a pretty big player in non-top shelf semi's, many of which are used in cars. An ECU does not need to be the latest node, nor would you want it to be to save money. This could be a fairly lengthy problem, because auto chips are low in the pecking order since they are low profit for the fabs, and because it takes 90 days to bake a new one assuming you can get in the queue. Changing foundries is also tedious, often requiring a redesign because the fabs do not share their sauce.

Another thing I found interesting was this. https://finance.yahoo.com/news/tsmc-spend-28-billion-2021-064820722.html They are spending over 50% of 2021 projected revenue on Capex. That is crazy high. They are expecting big growth in chips for sure.
 

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Pretty much all the same supply chain. GM probably just had dibs. Chips take around 90 days to bake, and orders are usually pre-ordered way in advance. another take on the problem is here. https://finance.yahoo.com/news/trumps-china-tech-war-backfires-051226063.html SMIC is/was a pretty big player in non-top shelf semi's, many of which are used in cars. An ECU does not need to be the latest node, nor would you want it to be to save money. This could be a fairly lengthy problem, because auto chips are low in the pecking order since they are low profit for the fabs, and because it takes 90 days to bake a new one assuming you can get in the queue. Changing foundries is also tedious, often requiring a redesign because the fabs do not share their sauce.

Another thing I found interesting was this. https://finance.yahoo.com/news/tsmc-spend-28-billion-2021-064820722.html They are spending over 50% of 2021 projected revenue on Capex. That is crazy high. They are expecting big growth in chips for sure.
Does make sense that GM had locked in their supply of chips. Now my next question is, is it just dumb luck of the timing or does GM lock in for longer contracts where Ford, etc. go for short term contracts. Or is it just timing, they all do 2 year contracts and it just so happens that Ford, Honda, etc are all at the end of their two year cycle where GM has a long way to go or something like that (and for the very literal folks, I made up the 2 year thing for sake of conversation).

Interesting. I knew Intel had some slipups, I'm saddened to hear they might outsource some chip production.

One thing the article didn't address and might be part of their investment in chips is 5G going mainstream. My understanding is the fast speeds will open up the capability to even more gadgetry which will require more chips.
 

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Does make sense that GM had locked in their supply of chips. Now my next question is, is it just dumb luck of the timing or does GM lock in for longer contracts where Ford, etc. go for short term contracts. Or is it just timing, they all do 2 year contracts and it just so happens that Ford, Honda, etc are all at the end of their two year cycle where GM has a long way to go or something like that (and for the very literal folks, I made up the 2 year thing for sake of conversation).

Interesting. I knew Intel had some slipups, I'm saddened to hear they might outsource some chip production.

One thing the article didn't address and might be part of their investment in chips is 5G going mainstream. My understanding is the fast speeds will open up the capability to even more gadgetry which will require more chips.
Remember, they also just recently deployed a new software architecture, perhaps, they negotiated for Chips with that deployment. Reuss is the overseer of the Supply chain, so he does something when not crashing ZR1’s it seems.

Do you want to drive a car with Chinese Chips? Perhaps GM just buys its chips within the US?
 

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Remember, they also just recently deployed a new software architecture, perhaps, they negotiated for Chips with that deployment. Reuss is the overseer of the Supply chain, so he does something when not crashing ZR1’s it seems.

Do you want to drive a car with Chinese Chips? Perhaps GM just buys its chips within the US?
Ha! I'd love a life with nothing Chinese. But that won't happen....
 

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Ha! I'd love a life with nothing Chinese. But that won't happen....
Hopefully companies do not assume all the trade realignment is done. Yeah, I know big business worked hard to remove the orange one, however, lack of meaningful jobs means that political football is far from over, the new administration better deliver on jobs, and well paying jobs.
 

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Hopefully companies do not assume all the trade realignment is done. Yeah, I know big business worked hard to remove the orange one, however, lack of meaningful jobs means that political football is far from over, the new administration better deliver on jobs, and well paying jobs.
They'll just prod us all to migrate... to Chinah. (for those meaningful jobs) ;)
 

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Did Foxconn ever finish it’s US investments?
I can't speak to what happened with that effort, but at a higher-level, it seems like almost everything SoftBank has even been involved with turns to crap.
 
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Does make sense that GM had locked in their supply of chips. Now my next question is, is it just dumb luck of the timing or does GM lock in for longer contracts where Ford, etc. go for short term contracts. Or is it just timing, they all do 2 year contracts and it just so happens that Ford, Honda, etc are all at the end of their two year cycle where GM has a long way to go or something like that (and for the very literal folks, I made up the 2 year thing for sake of conversation).

Interesting. I knew Intel had some slipups, I'm saddened to hear they might outsource some chip production.

One thing the article didn't address and might be part of their investment in chips is 5G going mainstream. My understanding is the fast speeds will open up the capability to even more gadgetry which will require more chips.
Probably dumb luck on order timing. It happens. I'd say 5G is part of the issue, but bigger changes are probably Apple now using TSMC for fab instead of Intel and possibly even Intel using TSMC instead of Intel as you mention. https://9to5mac.com/2021/01/13/chips-for-intel/ The fact that Intel is even considering outsourcing fab is really astounding to me. Intel was always ahead in the CPU world mainly because of fab not better processors. An example of that was when AMD beat Intel to 64 bit(Opteron) way back in 05 or 06 I think it was. Personally I think 5G is over-rated. Generally the frequencies they are using are much shorter range and so I am not sure the real world performance will be much better than LTE/4G.

Forgot to mention, TSMC is in Taiwan, not China.
 

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Probably dumb luck on order timing. It happens. I'd say 5G is part of the issue, but bigger changes are probably Apple now using TSMC for fab instead of Intel and possibly even Intel using TSMC instead of Intel as you mention. https://9to5mac.com/2021/01/13/chips-for-intel/ The fact that Intel is even considering outsourcing fab is really astounding to me. Intel was always ahead in the CPU world mainly because of fab not better processors. An example of that was when AMD beat Intel to 64 bit(Opteron) way back in 05 or 06 I think it was. Personally I think 5G is over-rated. Generally the frequencies they are using are much shorter range and so I am not sure the real world performance will be much better than LTE/4G.

Forgot to mention, TSMC is in Taiwan, not China.
I don’t understand this need for 5G either, I seem to stream quite well in 4 G
 

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You do know it's a proven fact 5G caused Covid :D
I honestly wondered how long it would take for this thread to turn into a Covid conspiracy theory ****fight

Surprised the anti vaxers haven't chimed in saying there is a microchip in their Covid vax yet :lmao:
 
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