Auto chip shortage just got worse

[Pronto]

On the heels of Ram pausing production of 1500 Classics due to the chip shortage comes this news:

Fire at Giant Auto-Chip Plant Fuels Supply Concerns

Shares of Toyota, Nissan and Honda fell as the industry assessed the impact on global chip supplies resulting from Friday’s fire at a Japanese factory owned by a unit of Renesas.

www.wsj.com

I don't think this directly affects Ram but even if not I'd bet there's some downstream consequences.

 

[elephantrider]

it's been causing ruckus in the tech industry for sure. I'm sitting on 17wks - 24wks for silicon wafers. ridiculous.

 

[CdnHD]

Stellantis Will Idle Production At 5 North American Plants Starting This Week! - MoparInsiders

Stellantis will temporarily close five North American assembly plants starting this week through early- or mid-April due to the ongoing semiconductor chip shortage. Semiconductors are the backbone of today’s automotive industry, controlling electronic features like driver-assist technologies...

moparinsiders.com

 

[Frank]

it's been causing ruckus in the tech industry for sure. I'm sitting on 17wks - 24wks for silicon wafers. ridiculous.

It's not like there wasn't a prolonged shortage just 3 years ago that should have triggered the industry to invest in capacity.

 

[elephantrider]

yup. fables chip economy with nare any onshore capability. talk about hogtying yourself out of a market.

 

[Frank]

yup. fables chip economy with nare any onshore capability. talk about hogtying yourself out of a market.

I don't even care about that. There are 270M people in Indonesia, build them a couple more factories. Chip shortage affects everyone else in the supply chain, including component suppliers that go into anything with chips.

 

[elephantrider]

who is going to fund the massive bill to bring on additional fabs? that's no simple feat.

 

[Frank]

who is going to fund the massive bill to bring on additional fabs? that's no simple feat.

When you just came off an 18 month shortage that affected the broader economy...plenty of people are willing to invest. Especially in low cost countries, it would surprise you how much public money is available in those places.

 

[elephantrider]

I heard the same story and rhetoric during the massive wafer shortage in 2016 that lasted 2 yrs. didn't see many folks come off of a couple billion cash to get wafer fans propped up. why would they want to when they will be charging a premium for chips as we move out of the cos issues. that's how "market" commodities work.

I wish they would bring up some lines. goodness!