The latest numbers on the microchip shortage: N. America, Asia

#1

11-28-2022 11:38 AM by AVANTI R5

Ooooo

Quote:

The latest numbers on the microchip shortage: N. America, Asia endure more cuts

Any notion from a year ago that manufacturers would have their microchip supply problems sorted out by the end of 2022 is proving painfully optimistic.
AutoForecast Solutions estimates that North American auto plants will have to trim more than 10,000 additional vehicles out of their schedules this week, while plants in Asia outside of China will have to eliminate 32,000 planned vehicles.

Industrywide efforts to steer out of the global microchip shortage have helped automakers avoid the depth of production problems it experienced last year.
But 2022 is still going to end with nearly 4.5 million cars and trucks knocked out of factory schedules because of the chip shortage, according to a new projection from AutoForecast Solutions.

That is far below the 10.5 million vehicles that had to be cut from automakers� plans last year. But schedules continue to be pared back because of the shortage.

According to AutoForecast Solutions, the auto plants of Europe face an additional 168,000 cuts between now and the end of the year.
#2

11-28-2022 11:39 AM by AVANTI R5

October vehicle production tips up about 15%
Ooooo

Quote:

October vehicle production tips up about 15%

North American vehicle production rose 15 percent in October from a year earlier, chalking up a ninth straight month of year-on-year gains, according to the Automotive News Research & Data Center.

The month brought an output of 1.32 million light vehicles, according to the data center, bringing the year-to-date total to 12.4 million vehicles � a 13 percent jump from the year-earlier period.

While October's output was the lowest since July, the continued gains compared with 2021 reflects progress after almost three years of turbulence driven by the COVID-19 pandemic. Production came to a near halt in April 2020 as lockdowns snarled global value chains. Output returned to pre-pandemic levels in the second half of 2020, until semiconductor shortages stalled production. The lack of supply led to slim inventory and high prices for new and used vehicles.
As production woes turn to gains in 2022, some promise is shown for meeting demand and restocking dealerships.

The seasonally adjusted annualized rate of sales in October rose to 15.3 million, the highest since January, according to Motor Intelligence. At the same time, new-vehicle inventory jumped to 1.56 million at the end of the month, up from 1.32 million at the end of September, according to Cox Automotive.
Historically, production tails off at the end of the year, as plants shut down for a Christmastime break. With two months left, the full-year tally is almost certain to be the highest since 2019's 16.4 million.
North American light-vehicle production the past two years, impacted by the pandemic and ensuing chip shortage, failed to top 13.3 million.
#3

11-28-2022 07:22 PM by VarmintCong

Quote:
Originally Posted by AVANTI R5
Ooooo
Well, companies like to blame anything but slowing sales, could be they're blaming chip shortages for the drop in vehicle demand.
#4

12-06-2022 10:42 AM by Genericuser1

TSMC is building a second chip plant to meet US semiconductor demand

https://www.engadget.com/tsmc-arizon...s&guccounter=1

The White House and Taiwan Semiconductor Manufacturing co. (TSMC) have announced plans to build a second chip plant in Arizona, AZCentral has reported. That will boost the company's investment in the state from $12 billion to $40 billion, while heavily reducing US reliance on semiconductor imports.

Both TSMC factories combined will produce 600,000 wafers per year. "At scale, these two [plants] could meet the entire U.S. demand for U.S. chips when they�re completed," the National Economic Council's Ronnie Chatterji told CNBC. "That�s the definition of supply chain resilience. We won�t have to rely on anyone else to make the chips we need."

The newly announced factory will produce cutting-edge 3-nanometer chips by 2026. The expansion marks one of the largest direct foreign investments in the US and the largest in Arizona. TSMC recently upgraded its plans at its first facility as well, announcing it will now manufacture 4-nanometer instead of 5-nanometer wafers. The first chips are set to be manufactured there starting in 2024, with Apple and NVIDIA reportedly among the first customers.

The CHIPS and Science Act allotted $52.7 billion in loans and other incentives, plus billions more in tax credits, to encourage US semiconductor manufacturing investment. The legislation aims to boost private financing in chip manufacturing in the US.

President Joe Biden is set to visit the site of TSMC's first plant later today, but the White House announced other related news yesterday. The US Department of Commerce and the European Commission are striking a deal to implement an "early warning mechanism" related to semiconductor chain disruptions following a pilot program last summer. The aim is to improve forecasting of semiconductor supply and demand to achieve a balance between the two.

At the same time, the EU and US are implementing a "transparency" mechanism around public support provided to the chip sector. In other words, one side won't blindside the other with unexpected semiconductor subsidies that could put either at a competitive disadvantage. A similar issue came up during a recent visit by French President Macron, as EU leaders complained that the US Inflation Reduction Act was unfair to non-American companies.
#5

12-06-2022 10:54 AM by Pre

Get rid of ADAS then and whatever else to trim the chip need on new vehicles.

#6

12-06-2022 08:07 PM by VarmintCong

Quote:
Originally Posted by Genericuser1
TSMC is building a second chip plant to meet US semiconductor demand

https://www.engadget.com/tsmc-arizon...s&guccounter=1

The White House and Taiwan Semiconductor Manufacturing co. (TSMC) have announced plans to build a second chip plant in Arizona, AZCentral has reported. That will boost the company's investment in the state from $12 billion to $40 billion, while heavily reducing US reliance on semiconductor imports.

Both TSMC factories combined will produce 600,000 wafers per year. "At scale, these two [plants] could meet the entire U.S. demand for U.S. chips when they�re completed," the National Economic Council's Ronnie Chatterji told CNBC. "That�s the definition of supply chain resilience. We won�t have to rely on anyone else to make the chips we need."

The newly announced factory will produce cutting-edge 3-nanometer chips by 2026. The expansion marks one of the largest direct foreign investments in the US and the largest in Arizona. TSMC recently upgraded its plans at its first facility as well, announcing it will now manufacture 4-nanometer instead of 5-nanometer wafers. The first chips are set to be manufactured there starting in 2024, with Apple and NVIDIA reportedly among the first customers.

The CHIPS and Science Act allotted $52.7 billion in loans and other incentives, plus billions more in tax credits, to encourage US semiconductor manufacturing investment. The legislation aims to boost private financing in chip manufacturing in the US.

President Joe Biden is set to visit the site of TSMC's first plant later today, but the White House announced other related news yesterday. The US Department of Commerce and the European Commission are striking a deal to implement an "early warning mechanism" related to semiconductor chain disruptions following a pilot program last summer. The aim is to improve forecasting of semiconductor supply and demand to achieve a balance between the two.

At the same time, the EU and US are implementing a "transparency" mechanism around public support provided to the chip sector. In other words, one side won't blindside the other with unexpected semiconductor subsidies that could put either at a competitive disadvantage. A similar issue came up during a recent visit by French President Macron, as EU leaders complained that the US Inflation Reduction Act was unfair to non-American companies.
TSMC is being forced to do this, and the CEO himself has said they don't want to build a fab in the US, it's not feasible, it's a closter **** as only government can accomplish.

To give you an example, many semiconductor vendors don't quality for subsidies from the chip act, so to supply TSMC in Arizona, they will have to sell their products at a loss (which they won't do). So TSMC is having to import basic consumables like ultrapure water into the US, which is just retarded.

Also the US is forcing TSMC to turn over all processes at the US fab, so that they can give it to Intel. As a result, TSMC is not going to install any of their best processes in Arizona, so at best it'll be a last gen chip fab.
#7

12-07-2022 10:03 AM by Genericuser1

Quote:
Originally Posted by VarmintCong
TSMC is being forced to do this, and the CEO himself has said they don't want to build a fab in the US, it's not feasible, it's a closter **** as only government can accomplish.

To give you an example, many semiconductor vendors don't quality for subsidies from the chip act, so to supply TSMC in Arizona, they will have to sell their products at a loss (which they won't do). So TSMC is having to import basic consumables like ultrapure water into the US, which is just retarded.

Also the US is forcing TSMC to turn over all processes at the US fab, so that they can give it to Intel. As a result, TSMC is not going to install any of their best processes in Arizona, so at best it'll be a last gen chip fab.
Source?

Quote:
From Reuters
TSMC sees $10 bln in annual revenue from Arizona chip plants

PHOENIX/WASHINGTON, Dec 6 (Reuters) - Taiwan chipmaker TSMC (2330.TW) plans to build a second chip plant in Arizona and more than triple its initial investment to $40 billion, estimating on Tuesday annual revenue of $10 billion from the plants when they are up and running.

The foreign investment by Taiwan Semiconductor Manufacturing Co, the world's biggest chip contract manufacturer, is one of the largest in U.S. history.

The first chip fabrication facility, or fab, will be operational by 2024 while the second facility nearby will make the most advanced chips currently in production, called "3 nanometer," by 2026.
According to News sources they will make money and will be producing their next gen 3nm process. Yes they are working on 1nm but a company doesn't spend 40 billion and sells products at a loss just because the US government says so.
#8

12-07-2022 10:21 AM by VarmintCong

Quote:
Originally Posted by Genericuser1
Source?

According to News sources they will make money and will be producing their next gen 3nm process. Yes they are working on 1nm but a company doesn't spend 40 billion and sells products at a loss just because the US government says so.
My wife and I (used to) work with TSMC. Cannot divulge sources but everyone here in Taiwan knows this is all a big joke. Don't believe Biden propaganda.
#9

12-07-2022 02:01 PM by Genericuser1

Quote:
Originally Posted by VarmintCong
My wife and I (used to) work with TSMC. Cannot divulge sources but everyone here in Taiwan knows this is all a big joke. Don't believe Biden propaganda.
Think of it this way then, it's Taiwan paying for US protection. Not like TSMC can't afford it.
#10

12-07-2022 04:58 PM by neg_matnik

Quote:
Originally Posted by VarmintCong
[...] so at best it'll be a last gen chip fab.
It's better than nothing. Not every chip or SoC need the latest 7nm / 5 nm / 3 nm processes.
Most of the SoCs I work with are using 10~12 nm process.
I realize that SoCs for mobile/cell phones and CPU/GPU for laptop/desktop are all the rage and they need to use the latest process nodes but I'm not quite sure consumer electronics and cars need that stuff. At least, not yet.

#11

12-07-2022 05:15 PM by mcarb002

Quote:
Originally Posted by Genericuser1
Think of it this way then, it's Taiwan paying for US protection. Not like TSMC can't afford it.
What he meant to say was that the source is: �trust me bro�
#12

12-07-2022 07:33 PM by VarmintCong

Quote:
Originally Posted by neg_matnik
It's better than nothing. Not every chip or SoC need the latest 7nm / 5 nm / 3 nm processes.
Most of the SoCs I work with are using 10~12 nm process.
I realize that SoCs for mobile/cell phones and CPU/GPU for laptop/desktop are all the rage and they need to use the latest process nodes but I'm not quite sure consumer electronics and cars need that stuff. At least, not yet.
That's true, but the article doesn't say that, it says TSMC is going to build their latest processes in the US. The is all US pressure, TSMC does not want to do this, they know it can't succeed in the US, we don't have the labor pool, we don't have the vendor support network, and it will cost 2-3X as much to build the same chip in the US, so there's no profit in it.

It's just more Washington bullying and propaganda, believe it if you want, just don't be surprised when it turns into another fiasco like Global Foundries in upstate NY. It's all funny money, so why not spend it?
#13

12-07-2022 07:34 PM by VarmintCong

Quote:
Originally Posted by mcarb002
What he meant to say was that the source is: �trust me bro�
Trust Biden then, that'll work out for you.
#14

12-07-2022 07:48 PM by VarmintCong

Quote:
Originally Posted by Genericuser1
Think of it this way then, it's Taiwan paying for US protection. Not like TSMC can't afford it.
Nobody cares about the invasion talk here, cause everyone knows it�s only the US who wants an invasion. I heard more people talking about invasion back in the US, nobody talks about it here. So no, TSMC is not building a fab in the US cause they�re worried about invasion, that�s more Biden propaganda.
#15

12-07-2022 07:51 PM by dwf137

Quote:
Originally Posted by VarmintCong
Trust Biden then, that'll work out for you.
Why do you make this about Biden? He rubber stamped it but it was a bill that was introduced in the house, approved, sent to the senate, and then rubber stamped by Biden. Bernie voted no. Other dems voted yes. Many repubs voted yes too. This isn't just a Biden thing man... This is the type of drivel that forces these threads down the ****ter. Talk about the merits of the bill and what's going to impact production but all this "it's the other guys fault" isn't productive.

#16

12-07-2022 08:03 PM by mcarb002

Quote:
Originally Posted by dwf137
Why do you make this about Biden? He rubber stamped it but it was a bill that was introduced in the house, approved, sent to the senate, and then rubber stamped by Biden. Bernie voted no. Other dems voted yes. Many repubs voted yes too. This isn't just a Biden thing man... This is the type of drivel that forces these threads down the ****ter. Talk about the merits of the bill and what's going to impact production but all this "it's the other guys fault" isn't productive.
Have you seen his other posts? They basically all end with: �would be better if it wasn�t for the crazy gov printing all that money��it�s literally his go to line as the sole reason for every problem from dealers having market adjustment fees to probably why the earth is flat lol
#17

12-07-2022 08:07 PM by VarmintCong

Quote:
Originally Posted by dwf137
Why do you make this about Biden? He rubber stamped it but it was a bill that was introduced in the house, approved, sent to the senate, and then rubber stamped by Biden. Bernie voted no. Other dems voted yes. Many repubs voted yes too. This isn't just a Biden thing man... This is the type of drivel that forces these threads down the ****ter. Talk about the merits of the bill and what's going to impact production but all this "it's the other guys fault" isn't productive.
I tend to think of Washington as one giant amoeba.

I know Biden is a drooling idiot, it's his handlers running the show.

And no, it's Washington bringing the world down the ****ter, not people like me calling them out for it.
#18

12-07-2022 08:08 PM by VarmintCong

Quote:
Originally Posted by mcarb002
Have you seen his other posts? They basically all end with: �would be better if it wasn�t for the crazy gov printing all that money��it�s literally his go to line as the sole reason for every problem from dealers having market adjustment fees to probably why the earth is flat lol
Once you see what's really going on, you can't unsee it.
#19

12-07-2022 09:06 PM by Brahmzy

@VarmintCong gets it
#20

12-07-2022 11:00 PM by godfather2112

Nope, we***8217;re done here. I don***8217;t understand why it***8217;s so difficult for some of you to not turn basic automotive conversations into political drivel.

A new sticky will get posted about political talk in news and rumors and I***8217;m simply going to start issuing points until people learn or find themselves unable to post in Nasioc.
#21

12-08-2022 08:36 AM by BigElm

Quote:
Originally Posted by godfather2112
Nope, we're done here. I don't understand why it's so difficult for some of you to not turn basic automotive conversations into political drivel.

A new sticky will get posted about political talk in news and rumors and I'm simply going to start issuing points until people learn or find themselves unable to post in Nasioc.
No reason to... It's already there and gets ignored until points are issued.

Closed