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The global chip shortage is starting to have consequences

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Re: The global chip shortage is starting to have consequences

#2
I've always wondered what it would be like to suddenly lose the ability to build higher technology like computer chips. Obviously this is just a shortage and not the same as manufacturing just vanishing, but the effects will be interesting to observe.

Re: The global chip shortage is starting to have consequences

#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, and more easily?

Re: The global chip shortage is starting to have consequences

#6
post #4

Why is there a shortage rather than a price hike, similar to what would happen with fuel? Long term contracts?

Well if I take a look at the GPU market the prices have nearly doubled over the past 6 months and there still isn’t any supply.

In other words, the price hiked to a point where people will otherwise say “I’ll just wait longer”, and this is what’s happening.

Re: The global chip shortage is starting to have consequences

#7
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…

My understanding is there is a substrate shortage as well as a foundry slot shortage.

Re: The global chip shortage is starting to have consequences

#8
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 logic in C and just reflash if you find an issue?

Re: The global chip shortage is starting to have consequences

#9

I've always wondered what it would be like to suddenly lose the ability to build higher technology like computer chips. Obviously this is just a shortage and not the same as manufacturing just vanishing, but the effects will be interesting to observe.

Many products like water boilers, ovens or toasters can be built more robust without digital chips. I would argue we would see a overall quality improvement from having a bad chip shortage.

Re: The global chip shortage is starting to have consequences

#10
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…

There’s still a limit to the production capacity available, these are still incredibly complex manufacturing processes, just not cutting edge.

Personally my take away from that was “what is a smart toaster and why would anyone need that”.

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