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The global chip shortage is starting to have consequences

cnbc.com

331–340 of 741 posts

Re: The global chip shortage is starting to have consequences

#331
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post #3

> Production of low-margin processors, such as those used to weigh clothes in a washing machine or toast bread in a smart toaster, has also been hit. While most retailers are still able to get their hands on these products at the moment, they may face issues in the months ahead. I understand why the new advanced chips could face shortages, but why are there shortages for these basic chips. Can’t they be made anywhere…

I don't know but maybe one of the factors is that given how cheap microntrollers have become it's not uncommon to use an "overpowered" integrated chip just for ease of development. Suppose that you have to drive some LEDs on a washing machine, do you bother developing some optimized bespoke circuitry with discrete components or do you just slap a ~2$ 100+MHz 32bit Cortex controller that will let you implement all the…

It doesn't matter for this, but it's definitely the case in the hobbyist segment. Look at how many people use Raspberry Pis for things better suited to a microcontroller.

Re: The global chip shortage is starting to have consequences

#332

Earlier quoted context omitted.

That's a tale as old as time to anyone who weathered the great recession, and I can deeply sympathize. You've highlighted exactly the value and difference experience makes. People born at the crest of the wave can only take for granted their position until they have lived enough to reflect.

As I finished writing that comment (and I truly tried to be constructive as the author is young and inexperienced) I remembered another traumatic event of that era. Every order we received was like precious molecules of much needed oxygen. We got this order from one of our resellers (we had about fifty all over the world at the time) for about half a million dollars in product. This needs to be in the right context:…

Maybe the real lesson of the whole thread is to require customers to pay in advance with a non-reversible wire transfer, or at least via an escrow service contingent on delivering the goods. Or alternatively, somehow buy insurance against the customer failing to pay.

Re: The global chip shortage is starting to have consequences

#333

Interestingly, there is an embedded video in that article that explains the issue specific to the automotive shortage - it's because the automotive industry cancelled a lot of chip orders in anticipation of low vehicle demand and that caused chip makers to reduce their production for the kinds of chips that go into cars, and now it takes time to ramp back up: https://www.cnbc.com/video/2021/03/02/how-the-global-compu…

The shift to JIT ("Just In Time") inventory has proven problematic:

"Coronavirus pandemic exposes fatal flaws of the 'just-in-time' economy"

https://www.abc.net.au/news/2020-05-02/coronavirus-pandemic-...

Re: The global chip shortage is starting to have consequences

#334

Interestingly, there is an embedded video in that article that explains the issue specific to the automotive shortage - it's because the automotive industry cancelled a lot of chip orders in anticipation of low vehicle demand and that caused chip makers to reduce their production for the kinds of chips that go into cars, and now it takes time to ramp back up: https://www.cnbc.com/video/2021/03/02/how-the-global-compu…

I get that this is a potential big problem, but I had to stop reading when the dog washing company blamed needing to respin a new board on a chip being out of stock due to this. I'm sorry, but if you aren't buying enough chips to build all the boards you want to build of a revision, this is just what happens, chip shortage or no. Stuff gets obsoleted all the time, it doesn't take a chip shortage. Blaming a black swan…

What are you talking about. The vast majority of companies use just in time stocking. If you sell x amount of a product that is when you order x amount of each item on the BOM. It has been this way for decades for manufacturing in the usa. There are tax and other liabilities when keeping more than required stocks on hand.

Re: The global chip shortage is starting to have consequences

#335
post #292
post #262

Earlier quoted context omitted.

Chips don't suddenly get obsoleted though, they get put in "not recommended for new designs" for at least a year or two beforehand, and when the chip maker plans to phase the chip out they typically give a "last time buy" notice at least a month or two before it gets discontinued.

The normal courtesy for LTB is a year, often 18 months.

And if you have a contract to buy a certain amount from a supplier then they will hold that much stock in their own inventory to cover your contract.

Re: The global chip shortage is starting to have consequences

#336
post #98

Earlier quoted context omitted.

Since 14% of renters are behind on rent and evictions begin June 30, aren’t vehicle repossessions going to kick in July / August? Presumably, due in part to eviction protection, they have been able to divert all or a portion of their rent payments to keeping up with bad car loans for commute vehicles that often will not be needed. These folks need them for housing unfortunately. If repossessed cars start showing up t…

What do you consider "meaningful new features"? What about new cars "sucks"? They are more reliable, safer, quieter, more powerful, more fuel efficient and more full featured than ever.

With brakes connected to the internet and useless touchscreens.

Re: The global chip shortage is starting to have consequences

#337
post #98

Earlier quoted context omitted.

Since 14% of renters are behind on rent and evictions begin June 30, aren’t vehicle repossessions going to kick in July / August? Presumably, due in part to eviction protection, they have been able to divert all or a portion of their rent payments to keeping up with bad car loans for commute vehicles that often will not be needed. These folks need them for housing unfortunately. If repossessed cars start showing up t…

> Most new cars still suck / Do not offer meaningful new features. In terms of bells and whistles? Yeah, not that much. But in terms of safety tech, there has been a huge progress in last 10 years and it’s not slowing down. New cars are not only getting harder to crash, but in case of crash they’re getting better and better at protecting you. Safety is main reason why I update my cars every few years, even tho it’s p…

A couple of days ago I was watching a dramatic video showing test collisions of old cars vs modern cars. I was surprised by how much safer a 2016 car was than a 1992 car. Not to mention the 1959 death trap Bel Air. (It's alarming though that 1992 is now the olden days.)

https://www.youtube.com/watch?v=TikJC0x65X0

Re: The global chip shortage is starting to have consequences

#338

Interestingly, there is an embedded video in that article that explains the issue specific to the automotive shortage - it's because the automotive industry cancelled a lot of chip orders in anticipation of low vehicle demand and that caused chip makers to reduce their production for the kinds of chips that go into cars, and now it takes time to ramp back up: https://www.cnbc.com/video/2021/03/02/how-the-global-compu…

The shift to JIT ("Just In Time") inventory has proven problematic: "Coronavirus pandemic exposes fatal flaws of the 'just-in-time' economy" https://www.abc.net.au/news/2020-05-02/coronavirus-pandemic-...

Nothing wrong with JIT. The mistake was thinking you could dole penalties for late deliveries, but stop purchasing whenever you like without consequences.

Re: The global chip shortage is starting to have consequences

#339

My wife just needed to get a new car, and the salesman was complaining that just as demand was starting to increase the chip shortage means they're barely getting any new ones in stock. And of course the popular models are the ones that are selling out the fastest, meaning people are holding off on purchases because they can't get what they want. My wife's was one of maybe 8 in the entire state that had the features…

I change a car every few years and this year is the time. So while I have been looking at what can I get now, I found that my current car is worth more now than when I bought it used 3 years ago. Crazy...

I change cars every 10 years. Had the current car for 7 years so probably this chip shortage is not going to impact me.

Re: The global chip shortage is starting to have consequences

#340

Earlier quoted context omitted.

A somewhat not intuitive fact: Most renters prioritize their car payments over other debts/rent. Without a car they have no income…

And you can sleep in a car, if need be.

"You can sleep in your car, but you can't drive your house."
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