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Discussion Starter · #1 ·
Carmakers' Chip Shortage that Caused Prices to Soar May Be Ending
Axios.com
By: Sam Ro
7-16-2021

Automakers may soon get a lot more of the chips they need to get cars for sale.

Why it matters: Winter weather, a fire and the COVID-19 pandemic have contributed to a shortage in chips that has stalled the production of new cars.

Driving the news: Chip giant Taiwan Semiconductor reported its Q2 earnings on Thursday, and with it announced relief was coming for automakers in need of chips.

  • On a call with analysts, CEO C.C. Wei said its production of micro-controlling units for cars would be up 60% in 2021 compared to last year.
  • "By taking such actions, we expect the automotive component shortage from semiconductors to be greatly reduced for TSMC customers starting this quarter," he said.
  • Taiwan Semiconductor controls a little over half of the chip production market share as measured by dollar value.
Yes, but: Cars need as many as 1,400 different computer chips so it’s too early to say the auto industry is in the clear.

The bottom line: Supply chain issues are plaguing industries all over the world. So, it’s good news to hear things are at least improving.
 

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Discussion Starter · #2 ·
The complete story is posted above although I can find the TSMC Q2 earnings call and post that as well. Not too much info in the article other than TSMC seems confident that their customers are going to have chips soon. Good news for whomever uses TSMC chips! I had no idea that cars can use that many chips.
 

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I sure hope so. I want to buy a new truck at the end of the year.
 

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I sure hope so. I want to buy a new truck at the end of the year.
I would hold off as long as you can. While you will get more for your existing truck due to the weirdness of the year, you will pay a lot more for the new truck also.

Of course, that is just me. I just saw the stat that new vehicles are currently selling at 99.9% of MSRP. That is insane.
 

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its not just automobiles having trouble getting semiconductors. the excess stocks around the world seem to be rapidly getting consumed. I have a part that I recently bought for USD2 each and within a month I needed more and they were USD3 but those got sold before I placed my order (which was the next day). I ended up having to pay USD4. Some parts have gone from USD2 to USD13 and even some are asking USD38 for the same chip.
It will soon start affecting a lot of electronic products. If you can't get one chip then its no use building the pcb up until you get it.
 

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Discussion Starter · #6 ·

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I would hold off as long as you can. While you will get more for your existing truck due to the weirdness of the year, you will pay a lot more for the new truck also.

Of course, that is just me. I just saw the stat that new vehicles are currently selling at 99.9% of MSRP. That is insane.
There was an article in Automotive News last week, that dealers are trying to buy trucks from other dealers for $3,000 over MSRP! Considering the discount a dealer gets off of MSRP, we are talking about dealers buying trucks for +$10,000 more than they otherwise would.
 

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There was an article in Automotive News last week, that dealers are trying to buy trucks from other dealers for $3,000 over MSRP! Considering the discount a dealer gets off of MSRP, we are talking about dealers buying trucks for +$10,000 more than they otherwise would.
out my way dealers are ADVERTISING they want to BUY your trade even if you do NOT buy a car from them and my dealer has bean trying to get me to trade in my RAM
little mention of discounts / sales OR even "specials" to buy
 

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out my way dealers are ADVERTISING they want to BUY your trade even if you do NOT buy a car from them and my dealer has bean trying to get me to trade in my RAM
little mention of discounts / sales OR even "specials" to buy
They are starting to do that here at some lots(the mfr. lots, not regular used lots), even though they seem to already have :unsure:"plenty" of used vehicles on them.
 

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Discussion Starter · #10 ·
The GMC dealer down the street finally got about five or six Sierras. They didn't look like stripper trims either. Since they didn't last long I wasn't able to check the sticker to see if there was a credit for not having wireless charging.

Drove by the large Ford dealer yesterday and they had a whole row, dozen or more, of what appeared to be work truck trim F-150s.
 

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Took my car in for service in LA. The Ford dealer had nothing but Fusions
I did the same with my Equinox Monday last week... Three Equinox's, five Colorado's, three Blazers, one Silverado, no cars-Malibu, Camaro, Spark. The dealer website shows other things in transit though, a Trailblazer and a few Silverado 1500's and an HD 2500 Silverado. Grand total of 18 vehicles. Pathetic really.
 

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If the car makes can get every chip they need today, I wonder how long it will take to satisfy backorders and get dealer lots back to full? A year?

This could have an interesting side consequence... I'm sure there are a lot of people like me that buy new - intrigued by the idea of used but when it comes down to it something in me just won't go used even though I know new makes no financial sense. Yet this situation will force some people like me into used vehicles, kind of break the ice and get people past that buying used hesitation. Could this somewhat change the fundamentals of the new/used marketplace? However, the more people that do buy used will ensure the used car prices stay high which can take away the reason to buy used.
 

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And yet there are bargains to be had. My brother sold his Trax to Carvana for $1200 more than he offered it to family members then bought an early '21 Enclave that was stalled on the dealer's lot because "it's option mix was wrong for the color"??? Apparently a black Essence without the panoramic roof was "unsellable" in their market. Since he didn't want the panoramic anyway, and while black wasn't his favorite he could live with it, the price was too good to pass up. Plus he got to use a ton from his GM card. With GM card savings he ended up $19,000 below MSRP. Bottom line though was he was flexible. Looked for Chev, GMC or Buick that was or could be a bargain, then called and negotiated. Also got 0% even though he was going to pay cash.
 

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And yet there are bargains to be had. My brother sold his Trax to Carvana for $1200 more than he offered it to family members then bought an early '21 Enclave that was stalled on the dealer's lot because "it's option mix was wrong for the color"??? Apparently a black Essence without the panoramic roof was "unsellable" in their market. Since he didn't want the panoramic anyway, and while black wasn't his favorite he could live with it, the price was too good to pass up. Plus he got to use a ton from his GM card. With GM card savings he ended up $19,000 below MSRP. Bottom line though was he was flexible. Looked for Chev, GMC or Buick that was or could be a bargain, then called and negotiated. Also got 0% even though he was going to pay cash.
Some people are not flexible - my wife isn't. I go for the best deal to get the overall vehicle I want. I'd have taken any color on the CT4V, don't care about the sunroof, etc.. My wife could've had some sweet deals on a couple of the vehicles she was interested in, but those deals were on vehicles that weren't her color choice or missing a sunroof, etc..
 

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If the car makes can get every chip they need today, I wonder how long it will take to satisfy backorders and get dealer lots back to full? A year?

This could have an interesting side consequence... I'm sure there are a lot of people like me that buy new - intrigued by the idea of used but when it comes down to it something in me just won't go used even though I know new makes no financial sense. Yet this situation will force some people like me into used vehicles, kind of break the ice and get people past that buying used hesitation. Could this somewhat change the fundamentals of the new/used marketplace? However, the more people that do buy used will ensure the used car prices stay high which can take away the reason to buy used.
Some people are not flexible - my wife isn't. I go for the best deal to get the overall vehicle I want. I'd have taken any color on the CT4V, don't care about the sunroof, etc.. My wife could've had some sweet deals on a couple of the vehicles she was interested in, but those deals were on vehicles that weren't her color choice or missing a sunroof, etc..
I toy with buying used sometimes but it would have to be one of whichever makes certified ones and then that's still no guarantee that there wont be issues. I'm sort of the same way as far as color and options. I ended up with an Equinox darker than I would have liked and more on it but a better price in the end. There are some colors I will not do though like black for instance and no way to panoramic sunroofs as well. :)
 

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And yet there are bargains to be had. My brother sold his Trax to Carvana for $1200 more than he offered it to family members then bought an early '21 Enclave that was stalled on the dealer's lot because "it's option mix was wrong for the color"??? Apparently a black Essence without the panoramic roof was "unsellable" in their market. Since he didn't want the panoramic anyway, and while black wasn't his favorite he could live with it, the price was too good to pass up. Plus he got to use a ton from his GM card. With GM card savings he ended up $19,000 below MSRP. Bottom line though was he was flexible. Looked for Chev, GMC or Buick that was or could be a bargain, then called and negotiated. Also got 0% even though he was going to pay cash.
Good for him. It just goes to show that if you're willing, there are some pretty good things to be had. Just play your cards right, I guess ;).
 

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I get mailers all of the time with offers to buy my Explorer at $___ over book. It's crazy.
 

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I toy with buying used sometimes but it would have to be one of whichever makes certified ones and then that's still no guarantee that there wont be issues. I'm sort of the same way as far as color and options. I ended up with an Equinox darker than I would have liked and more on it but a better price in the end. There are some colors I will not do though like black for instance and no way to panoramic sunroofs as well. :)
There are a couple of colors I'd steer clear from, I'd not touch my CT4V in hot pink or yellow (though I'd take a yellow Corvette).

But a lot of green in my pocket will get me over other, less questionable, colors.
 

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There are a couple of colors I'd steer clear from, I'd not touch my CT4V in hot pink or yellow (though I'd take a yellow Corvette).

But a lot of green in my pocket will get me over other, less questionable, colors.
I was actually referring to the regular production colors, but sometimes think it would be fun to land a former Mary Kay Cadillac just for the helluvit. ;)
 
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