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As a chip supplier, I'd be feeling a lot of pressure right now. In the short term you can squeeze and the tail can wag the dog for a bit. But longer term this opens the door wide open for new competitors in the market and / or vertical integration.
As Taleb likes to say, an efficient system is the opposite of a robust system, kind of by definition. We are now witnessing the effects of our modern hyper-efficient just-in-time global manufacturing system.
Edit, what the other poster said.
Toyota was one of the few (only?) companies to keep a large stockpile of chips on hand to continue production in case of a supply interruption. They kept something like two years worth on hand. I guess 18 months of doing the extremely heavy lifting for the whole industry has taken its toll and now they're in the same boat.
I thought Toyota invented not doing that.
Toyota was one of the few (only?) companies to keep a large stockpile of chips on hand to continue production in case of a supply interruption. They kept something like two years worth on hand. I guess 18 months of doing the extremely heavy lifting for the whole industry has taken its toll and now they're in the same boat.
I thought Toyota invented not doing that.
That is good news for planet earth!
Why? Because older, less efficient cars are being kept on the road for longer?
As a chip supplier, I'd be feeling a lot of pressure right now. In the short term you can squeeze and the tail can wag the dog for a bit. But longer term this opens the door wide open for new competitors in the market and / or vertical integration.
I don't think chip suppliers are playing games here, are they? I think in general all chip manufacturers are at capacity and it comes down to getting in line. And I'm sure many chip manufacturers are trying to expand their capacity. I can't imagine they're sitting there thinking this will last forever.
Earlier quoted context omitted.
When the supply of goods goes down, it pushes prices up.
But inflation has to do with the supply of money, not the supply of goods, right? Genuine question
Earlier quoted context omitted.
When the supply of goods goes down, it pushes prices up.
But inflation has to do with the supply of money, not the supply of goods, right? Genuine question
Toyota was one of the few (only?) companies to keep a large stockpile of chips on hand to continue production in case of a supply interruption. They kept something like two years worth on hand. I guess 18 months of doing the extremely heavy lifting for the whole industry has taken its toll and now they're in the same boat.
I thought Toyota invented not doing that.