Economy
Related: About this forumSemiconductor shortage that has hobbled manufacturing worldwide is getting worse
Source: Washington Post
After nearly a year, automakers are still cutting back on production and losing sales in a supply crisis that is also hitting other business sectors.
By Jeanne Whalen
September 23, 2021 at 6:04 p.m. EDT
The global semiconductor shortage that has paralyzed automakers for nearly a year shows signs of worsening, as new coronavirus infections halt chip assembly lines in Southeast Asia, forcing more car companies and electronics manufacturers to suspend production.
A wave of delta-variant cases in Malaysia, Vietnam and the Philippines is causing production delays at factories that cut and package semiconductors, creating new bottlenecks on top of those caused by soaring demand for chips.
Underscoring that the problem has defied easy solutions, the White House on Thursday held its second summit in five months with semiconductor manufacturers and buyers, in part to gain more clarity on the scope of the crisis, senior administration officials said.
Attendees included senior executives from Intel, General Motors, Ford, Apple, Microsoft, Samsung and two dozen other companies, as well as Commerce Secretary Gina Raimondo and National Economic Council Director Brian Deese.
Frustration has mounted on all sides. Automakers want semiconductor companies to crank out more chips for cars. Smartphone companies do not want their semiconductors diverted to automakers. Chip manufacturers say the auto industry shot itself in the foot by canceling semiconductor orders after the covid crisis hit. They are also impatient for Congress to approve $52 billion in federal subsidies to boost domestic semiconductor manufacturing. That measure, supported by the White House, has cleared the Senate but not the House.
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Read more: https://www.washingtonpost.com/us-policy/2021/09/23/chip-shortage-forecast-automakers/
msongs
(67,371 posts)ret5hd
(20,483 posts)These new ways of doing things are great!!!
Backseat Driver
(4,381 posts)Are the subsidies part of the Infrastructure package?
OAITW r.2.0
(24,339 posts)Cultivate 3-4 Tech Companies that can envision and produce their silicon designs. And produce here. Fact is. manufacturing is coming back....just not making cheap hardware.
PoliticAverse
(26,366 posts)The solution to most every problem these days - corporate welfare.
underpants
(182,634 posts)Talking to computer supply companies and audio visual contractors it appears two factors created the problem. More than COVID. There are three main chip producers in China. One had a fire which didnt shut them down but greatly decreased production. There is also a draught in the area that at least one of these plants are located. Apparently it takes a tremendous amount of water to make chips and water usage has been restricted.
This info comes from conversations while Im trying to find laptops and contracting for a new lobby monitor display.
Not really related but it also takes 20,000 liters of water to make a pair of jeans and a T-shirt.
The other problem with laptops is sand. The third most used component after air and water in general. Worldwide construction (concrete) is about equivalent to building a New York City every year. The glass for the monitors requires a very specific kind of round sand. Mostly harvested from river beds. Countries and localities have put restrictions on this sand for environmental and controlling supply ($) reasons. This effects TV monitors as well. Every other part of computer equipment has caught up to the pandemic rush for at home items like cameras except laptops. I had a sales person find 20+ laptops in inventory to fill our need earlier this year. Seriously scrounging. The contract for our lobby display was finished in August but they dont expect to get the monitors until December at the earliest.
Binkie The Clown
(7,911 posts)With no chips, that could turn out to be the case.