OT: global semiconductor shortage
First, it was ps5 and Xbox shortages where you could only reliably snag one if you paid a heavy premium on the third market
Then it started hitting the auto industry—plants worldwide shut down and used car prices rose to all time highs
Now it’s only getting worse, with even the biggest players like Apple expecting to be hit hard
In fact, the demand for a new chip is higher than at any point in the pandemic. Now people expect this to drag well into 2022, at minimum
Anyone here feeling the pain of this shortage with their attempted purchases?
It was slightly harder to get the new car I wanted at the end of my lease. Had to settle on a paint color I wasn’t initially interested in. They have the cars built but theyre just waiting on chips.
April 29th, 2021 at 10:13 AM ^
This is going into a museum as exhibit A for what it means to be privileged. The golf club comment below isn't far behind. Actually, let's just submit the whole thread and call it a day.
April 29th, 2021 at 10:41 AM ^
I am really interested what argument this is evidence for and where this thread will be submitted.
Golf clubs don't use chips, so I'm good.
Even those are experiencing delays, though obviously not because of chips. I just ordered a custom set and, due to material shortages, I won’t get my iron set until end of June.
April 29th, 2021 at 12:09 PM ^
Yup, had a 6 week wait late last fall for some Cobra woods. There actually is a chip in the damn things, Arccos or something. The store even canceled the order until I called up and demanded the price. I told them I can wait but I want those clubs at that price when they can get them to me.
Got fit in November for some Mizuno's and took 8 weeks to get them, what normally would be 2-3 weeks max. If you get on golf forums you'll hear stories of clubs being delayed 3-4 months. Off the rack you can still get some stuff obviously, but if you're looking for anything at your specs, you could be in trouble.
My issue exactly. Now granted, I’m left handed, but I ordered some custom T-100’s. I placed the order in the beginning of July and received my clubs at the end of November.
April 29th, 2021 at 12:02 PM ^
Just got a brand new Ping G425 Max driver with Tensei 65 shaft. I thought I would have to custom order it, but the shop where I demo'd it had exactly one in stock (would have been 4 to 6 week wait).
I could have gotten it on-line, but I wasn't going to spend this much money without actually hitting it in person (would be a dickish move to then buy on-line).
Tennis equipment (rackets, shoes, etc.) is also in short supply. Due in part to it be a naturally socially distanced sport, tennis participation in the U.S. increased by 21% in 2020 and the major equipment suppliers have struggled to keep up.
Salt and vinegar chips. Bettermade HOT chips. Very difficult to find.
So why bother? Salt & vinegar chips are horrible!
April 29th, 2021 at 11:11 AM ^
This is a bad opinion and you should feel bad.
Salt and vinegar chips are one of my favorite foods. I'm not kidding.
I do not need a new phone
I do not need a new video card or a new processor
I do not need a fancy new car
I would like a ps5 or a better video card or proc but what I have right now is good enough.
So the semiconductors can go flock themselves
April 29th, 2021 at 11:41 AM ^
I built myself a top of the line PC a few years ago for around 10k; I shudder to think what it would cost me now, IF I could purchase the components.
10K? Did you use gold cables? I'd think you could build a time machine for less money.
April 29th, 2021 at 12:13 PM ^
I used to think that 4k gaming was not a big deal, but after playing with my Xbox X for the last several months, I cannot go back. It really does make a huge difference on my 75" display.
It just sucks for the auto industry. Pandemic was more or less weathered and damage was minimal. Nowhere near expected. Then this hits and more or less ruins the chance at a good year (and bonuses).
I'm very glad the Coke Zero shortage has seemed to have come to an end.
Does anyone else have a poker chip shortage on a Friday night?
I seem to have poker chip shortages at the end of Friday nights... Love playing the various games, but I suck at them.
Maybe that's why I keep getting invited? But I prefer to think we're all 'friends'...
I tend to be pretty flush myself...
So we just can't Fire Up Chips and solve the global shortage?
i work in the audio visual world and it seems like everything is on backorder because of the shortage... any kind of digital signage player is taking close to 2 months if not longer get to us now when it used to take a couple of weeks...
Let's be clear that this is a failure of the automotive industry to properly forecast and purchase a very long lead item. A year ago they were telling the semiconductor industry to stuff it and cancelled long term contracts. The production was reallocated to others who paid higher prices. Now the auto industry wants their orders reinstated and their pricing honored. Apple and Microsoft also used the Arrogant Major Customer playbook. Now they are seeing the results. Play stupid games, win stupid prizes.
What's changed in the automotive forecasts? I'm not seeing any changes in the forecasts that would cause this.
April 29th, 2021 at 12:30 PM ^
Yeah I either read that somewhere or heard it on a podcast. The auto industry is used to being able to demand lower prices and tell their suppliers to start and stop supply as they command it. A bunch of them overplayed theirs hands with the chip manufacturers last year and theyre really paying the price now
Well, I work for a public utility, so we've escaped this unless you have a work-related laptop issue, but as a consumer, it does seem like anything of note in the world of technology is currently on backorder. Fortunately, we're OK on the tech front right now.
yeah..... lets not even get into the whole market for bourbon...... and they don't even use semiconductor chips.
This has been a disaster for the section of the transportation industry that I work in which is tied in heavily with automotive. Unpredictable runs on production lead to a very strange truck market which makes problems for everyone involved.
These microchips are in everything. The other day I saw a Febreeze commercial that has a plug in room air freshener that knows when the room needs a spritz. Well, that means there is a microchip, in a freaking air freshener.
The microchip manufacturers stayed close with the auto industry for a long time, then the pandemic hit and auto manufacturing started shutting down and calling suppliers telling them to halt production on parts. The microchip companies then had to make a decision, shut down with them or find other avenues for revenue. Ahhh, look, people are buying consumer electronics in droves because they can't do anything else. So they shifted their focus. Then auto manufacturing opens back up and says ok guys we are good now, send those parts on over. The microchip companies are then like, uhhhhhh....about that....
Yep, I run an IT department for a local organization and I've seen the effects of this in the last several months.
First, prices for computers are increased over what we've paid in previous years. I know there was a run on laptops at the beginning of the pandemic, so that plus a chip shortage means we're paying maybe 10-20% over what we have in the past.
Second, some parts for computers are hard or impossible to find. We've been trying to build a new server, but some parts are out of stock so we've had to settle for similar, but not exact, replacements.
Third, arrival time on parts and systems ordered is pretty spotty right now. Some equipment I've ordered just never ships (even though it's "in stock"), so I've had to cancel the orders and find replacements. On the other hand, a batch of systems I ordered was slated for delivery mid-May, but apparently they're coming today, so /shrug
It is what it is, I'm not sure of all the causes, but I imagine the Suez Canal thing and the pandemic have both affected supply. Demand has also been up, at least on laptops and other remote learning/working devices. If my economics is still correct, I believe increased demand and decreased supply is... bad for the (consumer's) wallet.
I heard that the drive, chip, and putt contest will be cancelled.
April 29th, 2021 at 10:22 AM ^
Upvoted based on previous comments in the thread. Well played.
We gave Harbaugh six years to solve the semiconductor problem. SIX.
Make or break year if you ask me.
April 29th, 2021 at 12:10 PM ^
I think Gattis and Brown get the blame. We focused on "speed in space" and got a nifty Mars rover and helicopter. Meanwhile, back on Earth, our defense sucked. Now Chip and Karen can't buy a new Mercedes EQS to replace their 3 year old S-Class that burns dead dinosaurs.
I could really use another GPU...
...Only have 20 3080's in the bitcoin rack, and that 21st would really help that sweet, sweet coin mining
/s
Exactly how the New World Order planned it
I mean, with all the chips being diverted to vaccines, who didn't see this coming?
This came up on a call yesterday with a construction company in PA who said lumber is just as hard to find due to tariffs.
Knock on wood (if you can afford it) but I haven't felt the impact yet and any new vehicle / computer / phone purchases aren't imminent so I should be able to wait on supply and cost to balance back out.
I follow the solar chain very closely, specifically polysilicon. Polysilicon is the root basic material in semiconductor chips and solar panels. I have done extremely well in my investment of DQ (Daqo New Energy, 2nd largest poly producer and lowest cost producer).
This all started almost a year ago coinciding with Covid (mandatory manufacturing shutdowns in some places). Additionally, 3 of the largest semiconductor companies had major problems. DQ had a small fire so their 5MT plant went down for a month. a 50MT GCL plant had an explosion and has been out of commission for about a year now. A 20MT Tongwei plant had a flood and was out of commission for at least a month.
All this time, Covid reduced poly production on top of the above. Polysilicon demand increases approximately 15 to 20 percent a year. This was a perfect storm, and what you are seeing now is extreme demand of poly and limited supply across the chain.
Poly ASP's have gone from 7 USD a kilo to over 16 USD a kilo in 7 months.
Half these links are down half the time, but i have them bookmarked and check every Wednesday. DQ has been a very large investment of mine, and i still own a little so i watch closely.
https://www.energytrend.com/solar-price.html
http://www.sunsirs.com/uk/prodetail-463.html
http://pvinsights.com/
https://www.infolink-group.com/en/solar/spot-price
https://www.bernreuter.com/polysilicon/price-trend/
April 29th, 2021 at 10:17 AM ^
Ive been on the lookout for a new bike for over a year. I may luck out next month with "new shipments" but I have heard that a few times.
April 29th, 2021 at 10:25 AM ^
Need trucks for my business. Can't find them. Called every dealer and they basically laughed at me. I have to pick between Ford and Toyota. Pickins are slim. Not sure if it is chip related and more likely a few different factors but it has made for some sleepless nights for sure.
I work for a Ram dealer, only sold units are being built at this time. If the trucks are a generic build they will show up fast, so they can be built and delivered quicker. I am 9 months into a Ram 1500 lease, I was offered $3500.00 to turn in early and get into another truck. The used car market is crazy.
you guys at the BC level are getting hit the hardest.
April 29th, 2021 at 10:43 AM ^
It’s also hitting the aerospace industry. I’m an aerospace consultant and one of my customers, Northrop Grumman, is having trouble getting parts in. I was in a meeting about it last week and had to tell them their parts were pushed out until April 2022.
April 29th, 2021 at 10:58 AM ^
Last night I read that it's a compounding problem, since the supply chain for the chips is highly complex, and has more internal reliance than others - you need chips to build more, basically.
Maybe it wouldn't have made a material difference, but I'm thinking that chipping and connecting everything from air fresheners to washing machines to pet feeders was unnecessary and destructive in hindsight. We know McDonald's has outsized control over the prices and availability of basic foods, it should be no surprise that an explosion in usage of semiconductors would stress the supply chain.
April 29th, 2021 at 11:19 AM ^
I only buy superconductors. Semiconductors are for losers.