How the world ended up with an acute chip shortage

The world is facing an acute chip shortage. Numerous companies, including the auto sector, are facing an inability to get semiconductors, hampering their ability to manufacture their products.

How the world ended up with an acute chip shortageTracy Alloway and Joe Weisenthal for Bloomberg News:

Part of this is an acute crisis, related to the virus. But there’s also a long-term structural issue, with so few companies able to manufacture at scale. On this episode, we speak with Stacy Rasgon of Bernstein Research, who helped kick off our semiconductor series last fall, with a discussion about the current problem, and how it will get fixed.

MacDailyNews Note: As per the chip shortage and what’s being done about, see also: Phoenix City Council okays development deal with TSMC for $12 billion U.S. chip factory

18 Comments

    1. Why is it that so many people who haunt this website feel the need to turn everything into a political discussion?

      Why can’t you find a website with people who agree with you to blow off steam?

      Whose minds are you changing with comments like these OR similar comments from the other end of the political spectrum?

      All you are accomplishing, as far I can see, is that you are just frustrating people like me who look for intelligent, thoughtful, insightful technical comments about the subject of the article.

      What would prevent you from posting an intelligent, thoughtful, insightful technical comment about the subject of the article?

      Or, on the other hand, what would encourage you to post somewhere else if you really have nothing useful to add except a worthless political comment?

      Why can’t MDN delete all these worthless political comments and limit responses to actual useful technical comments?

      I understand that MDN supports 1st Amendment rights – that great. But how much is MDN really affecting Free Speech by just limiting article comments to useful technical comments that actually apply to the article (unless it is actually an article about politics)? There is free speech all over the internet – take your political polemics somewhere else.

      Color me frustrated with all of you useless commentators and for MDN for not being a better manager of your website.

      1. Because Big Tech and the global supply of chips are political. It is a geopolitical topic. Biden is at the helm of a big country in need of chips. That seems political to me.

        1. Thanks for posting a useful comment!

          I get what you are saying. The question would then be: “How can the US, under whatever administration, change this?

          The second question would be: “Has the current administration made any false steps that would not help the chip situation?

          This is how a reasonable discussion starts, especially if it involves politics.

          My comments above still stand useless comments and commentators still stand but we could use more commentators like you that start a intelligent thoughtful discussion.

          1. Accept/demand something more than the slave wages or the gig economy.

            The Gig economy is a third world economy.

            Live within your means and save as much as you can and invest, cause no one else will help you aside from family.

            The GI Bill, Unions, single payer, 401k, SS, Medicare and your interest-mortgage deduction aren’t evil despite what a 5 percenter, your boss, a MBA or a politico parasite says.
            .

          1. Then why are China, Taiwan and the US in a triangular tangle/ tango over chips and vaccines doses? Seems political to me. Maybe even medical, too.

        1. Very good point! I always try to assume that commentators are. But for a depressingly large group of posters on this website, who can only drool out nonsequiter political comments or abuse, I really often wonder if this really the very best they can do. There is nothing in their head at a higher intelligence level. I really also wonder whether, if they truly could think at a higher level, why aren’t they posting more thoughtful, insightful, intelligent comments

          (heavy, heavy sigh)

    2. Entertaining to watch In-China’s-Pocket Biden’s administration negotiating with Taiwan for more chips. So ironic! Hope Taiwan tells Joe where he can stick his chips!

      1. Biden isn’t responsible for microchip purchasing. He has, however, written executive orders for executive departments to source more equipment from American providers. Unfortunately it’s not a light switch to change supply chains. Just ask Ford, they had to shut down final assembly plants due to late microchip deliveries.

        Apple and other ultrapatriotic companies could, if they wanted to, partner with US chipmakers like Intel or Texas Instruments or IBM to ensure a US source of manufacturing of its proprietary M and A- chips. Likewise the NRA bigwigs could wear American clothing rather than lavishing themselves with imported French and Italian suits. But we digress. Freedom apparently means that others may choose to buy things that you don’t appreciate. Apple buys the cheapest chips it can get, and Wayne Lapierre takes member dues to buy the most expensive haberdashery.

        So you are free to criticize Offshore-to-the-Max Cook, MDN claimed “supply chain genius” wholong ago chose to get all A series chips from Samsung, later adding Taiwan Semi. Just be consistent, unlike MDN.

        If you have a problem with Apple procurement of Chinese, Koren, and Taiwanese components for all its products. Well you know what to do, buy domestic!

        Stop driving your pickup truck too. It’s got at least 25-50% imported parts on it. It also burns fuel, about half of which was imported to America from US-hating dictatorships all over the world.

        But you knew that, you patriotic hypocrites.

        If you don’t believe in trade, then walk the talk.

  1. Always have a backup! This one simple chip that everyone uses was ONLY made by ONE company in the WORLD. This small company had a fire last October that stopped production. There are now three additional chip manufacturers racing to make an equivalent chip so everything will be back to normal soon. How every car maker and countless other companies didn’t have backups for a third party vendor is mind boggling!

    1. Watch out KenM even making a suggestion that Apple make devices in the USA, Europe and Asia, to eliminate some of the risk is against the code of slave labor at all cost. (The Modern American MBA business code).

      1. Let’s “Raise the Bar” on our commenting(at least here at MDN). Apple was never mentioned or implied in my statement. These are the facts and solutions that have transpired since the fire. Replys that have nothing to do with the statement have made comment sections, and social media frustrating to even look at.

    2. Do you have a back up for your local grocery store or gas station? We live in a complex, inter-connected world, which demands we rely on a complex chain of relationships. In fact, US Air Force targeting is based on finding ‘centers of gravity’ – taking out one small thing that will collapse or restrict an enemies ability to fight. The point is we all live with these vulnerabilities – the question is do each of us, person, company or country full understand and reinforce these weaknesses? This is a very difficult and expensive thing to account for.

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