TSMC: Low-end chip demand is holding up production in key supply chain segments

C. C. Wei, the CEO of Taiwan Semiconductor Manufacturing Company (TSMC), warned Tuesday that an endemic shortage of chips costing anywhere from 50 cents to $10 is slowing down swathes of the $600 billion semiconductor industry.

TSMC: Low-end chip demand is holding up production in key supply chain segments

Debby Wu for Bloomberg News:

ASML Holding NV of the Netherlands is struggling to obtain $10 chips for its extreme ultraviolet lithography systems, or EUVs, he said. TSMC has dozens of the machines, which are critical for packing more power onto smaller slivers of silicon. Elsewhere, a 50-cent radio chip has been holding up the production of $50,000 cars, Wei said, without elaborating.

Shortages are showing up as a result of automakers adding more features to cars and increasing the silicon used by 15% every year, while smartphones now require two to three times the number of power management chips they did five years ago, Wei said.

“The age of an efficient, globalized supply system has passed,” he said, noting that production costs are also increasing due to more countries racing to build fabs at home. “Costs are swiftly rising, including inflation.”

MacDailyNews Take: The repercussions from stupidly shutting down entire economies over COVID in a rights-trampling panic, instead of thoughtfully working to protect those with comorbidities who were most at risk, will be felt by all of us for many years.

The real virus is the panic.MacDailyNews, March 9, 2020

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9 Comments

      1. Democrats shut down entire economies, not Republicans.

        And everybody knows it, no matter how much you lie, liar.

        Report: Republican-led states fared better during, after COVID-19 crisis compared to Democrat-failed states

        The governors of nine of the top 10 states that fared the best are Republicans. Nine states received A grades. Maine is the only top-10 state with a Democratic governor.

        The governors of eight of the worst ranking states are Democrats. In the bottom 10, six received F and F- grades and four received D grades.

        All failing states reported high age-adjusted death rates, high unemployment, significant GDP losses, and kept their schools shut down much longer than almost all other states, the report found.

        The top states reported lower death rates, low unemployment and had higher percentages of their school-age children receiving in-person instruction.

        The analysis also evaluated other studies that found that locking down businesses, stores, churches, schools, and restaurants had almost zero impact on public health outcomes. States with stricter lockdown policies reported “virtually no better performance in Covid death rates than states that remained mostly open for business,” the analysis found.

        It also found that keeping schools closed had “almost no impact on the death rates of children or adults, but it did severe damage to the educational progress of students.”

        When it comes to employment, states that implemented strict lockdown policies reported unemployment rates roughly 2% higher, on average, than states that didn’t impose them. Most lockdown states still haven’t fully recovered the jobs they lost when the coronavirus first hit. They’re also still grappling with persistently high unemployment two years later.

        1. Repeating lies and even believing those lies does not turn them into truth.

          After all you delusional conservatives have implemented all your voting “safeguards”, then you’ll have no excuse when you lose…

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