OT: global semiconductor shortage

Submitted by Malarkey on April 29th, 2021 at 7:23 AM

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?

https://www.bloomberg.com/news/articles/2021-04-29/auto-chip-shortage-crisis-worsens-with-bmw-ford-succumbing?srnd=premium

antidaily

April 29th, 2021 at 7:27 AM ^

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.

cbutter

April 29th, 2021 at 8:24 AM ^

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. 

Gameboy

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).

Darker Blue

April 29th, 2021 at 7:56 AM ^

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 

ypsituckyboy

April 29th, 2021 at 8:09 AM ^

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).

GOBLUE4EVR

April 29th, 2021 at 8:12 AM ^

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... 

AWAS

April 29th, 2021 at 8:22 AM ^

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.

 

lhglrkwg

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

LSAClassOf2000

April 29th, 2021 at 8:23 AM ^

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. 

GET OFF YOUR H…

April 29th, 2021 at 8:37 AM ^

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....

SphtKr

April 29th, 2021 at 8:43 AM ^

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.

 

lawlright

April 29th, 2021 at 9:11 AM ^

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

Nickel

April 29th, 2021 at 9:32 AM ^

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.

Champeen

April 29th, 2021 at 9:38 AM ^

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/

Gree4

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. 

 

 

GoBlueMike21

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.

LakeAnnCAB

April 29th, 2021 at 1:06 PM ^

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.

hillbillyblue

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.

Sambojangles

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.