#chipsupply
The global chip shortage describes the current lack of computer chips which was indirectly caused by the Covid-19 pandemic. The simplest explanation for the chip shortage is supply and demand.
Chip supply
As of 2019 Chip supplies, which were already stretched thin due to the China-US trade war saw further decline As Chinese companies, began stockpiling computer chips in anticipation of the forecasted global shortage. The existing chip shortage was further exacerbated by an unforeseen winter storm in Texas and a fire in Japan.
In February of 2021, 3 million homes were left without power as a cold front swept through Texas killing Dozens of people and causing billions of dollars of damage to infrastructure and private property.
The winter storm also closed semiconductor plants located in Austin Texas to shut down resulting in production delays for Chipmakers $NXPI , #Infineon, and #Samsung Electronics.
In April of 2021, The Global computer chip supply was further disrupted when Renesas, a Japanese Electronic Corporation and chip manufacture’s, plant caught fire.
According to Reuters.“Renesas makes nearly a third of the microcontroller chips used in cars around the world”. As of July, the Renesas 300mm chip manufacturing line is functioning at 88% capacity thanks to the coordinated efforts of the Japanese government and $TM .
In addition to all of the other factors mentioned above the global semiconductor, supply is also being threatened by its biggest drought in 56 years. Taiwan’s drought is significant for two reasons, the first being Taiwan is one of the rainiest places on earth, and the second is Taiwan produces 90% of the world’s semiconductors.
Taiwan is considered one of the rainiest places on earth it also and is considered the home of the $100B semiconductor industry. Taiwan’s precipitation and its semiconductor production are no coincidence, semiconductor production is very water-intensive, the Hsinchu Science Park is home to many of Taiwan’s semiconductor manufacturers is said to use 170,000 tons of water each day.
Most of the water used in semiconductor manufacturing is a result of the wafer cleaning process that uses water and other chemicals to remove organic, metallic, and ionic contaminants from the silicon wafer.
In 2020 at the beginning of the pandemic, As businesses and schools closed their doors, And instituted home school or work at home policies. The demand for electronic devices Increased.
1 of 2, Perfect Sorm: Semiconductors, ICE’s and EV’s https://pocketchange.investments/a-perfect-storm-semiconductors-ice-and-evs/ #PocketChangeInvestments
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Actually, and I don't mean to get political, but the simplest explanation is that Trump restricted goods from China and that's why we have the shortage. The semiconductor association warned him in a letter that exactly this would happen but they went forward anyway.
https://finance.yahoo.com/news/how-trump-worsened-the-semiconductor-shortage-192026179.html
@tcardizzle in my personal life I’d blame everything on our geo-political stance and leadership but I try very hard to refrain on here lol… but I’m definitely not a “both sides” are wrong guy, I assign guilt to the guilty and berate enabler’s 😂.
I try to be tame here because some adults theses days can’t separate their hate for the other “sports team” and their ability to think objectively.
True
Anthony Soto@cyberlink1776
It’s all orchestrated
I’m thankful for all you here
Input helps so much we learn from each other
Have a blessed day everyone
@tcardizzle do you understand the reasoning behind Trump’s action or just looking at the shortage as Trump’s fault? I’m curious. It feels as though “Orange man bad” takes precedent over as to the “why” something occurs. Not attacking, just curious.
So long as we admit that we are off on a tangent, let’s just say that most of why the guy did was necessary Or gonna happen eventually no matter how unpopular or uncouth the guy was.
👆but I digress because it’s not really related to this post
@SarcasticSpy - i appreciate that comment. i am not Trump supporter; but i do support ‘America First’ with regards to fair trade. So, hopefully i understand the ‘why’. my opinion is that his administration attacked nuanced issues with a hammer. i also think that Democrats try to tackle hard problems with a q-tip.
let’s hope those of is in the middle will speak up and be heard above the vocal minor…See more
@seagull722 I’m a free market guy and hope that government would just get out of the way. I don’t think Congress tackles the right problems. Either way, shortages in things coming from overseas has to understand there is a National Security issue attached. That was my input to @tcardizzle ‘s post. The pandemic on the original post is a contributor, but not the sole cause.
You state that it was caused by Covid, then it says the exact opposite in your article. Just what this administration and the media does
@SarcasticSpy the question isn't reasoning the question was why is it happening. See I don't have any interest in covering for someone. Wrong is wrong. Biden is continuing the wrong Trump started. Intel went to him with a plan to use Chinese factories to ramp up production and Biden refused. I literally couldn't care less who is with what party. Why is that such a factor in everyone's analysis? You…See more
Appreciate the write up! Thankful for a community that pushes me to learn more each day
@tcardizzle there was nothing bipartisan about the recent bill. I wasn’t eluding to party favoritism only the why. If no one cares about the why, all you’re going to care about is that it isn’t happening. I prefer my semiconductors to not pass information to the Chinese. The Chinese are the producers and users and they don’t care whether the chips contain spyware because the government controls eve…See more
@ctsshah thanks 🙏
@wolfofnashville who were you responding to, please tag an individual unless you were just making a general statement or casual observation.
Patrick@namastestrategy
@arbitrage Astute points as always, and so informative.
Ryan Martin@RyanMartin
@namastestrategy gains, this will be a series so im glad you enjoyed it.
I did a deep dive but didn’t want to post it 20k word data dump lol
Correct, which means once the chip shortage is over , the over inflated demand goes down as well as the perceived value of the stock. Know when to hold em, know when to fold em
Maybe an American Co. should step up & start making those desirable chips. Just a thought.
@KingSolana not exactly, what happens after the “shortage” is over is covered later on in this series, in my next few post
Patrick@namastestrategy
@arbitrage and that effort and engaging approach to education is one of the things that makes you such a valued part of this community!
Random tangent (maybe for future discussion): I’d be interested in your thoughts on the role that helium procurement- also vital to chip production- may play in the current shortage and how we get out of it. I’m still learning about the many pieces of the producti…See more
Then why hasn't Biden reversed this... how long do you blame Trump... another year?
