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On 18 July 2023, it was proposed that this article be moved from 2020–present global chip shortage to 2020–2023 global chip shortage. The result of the discussion was moved. |
I worked at Intel for a few decades. I feel I know plenty about the semiconductor industry. I also worked with Intel's automotive division when it existed. Not much of this is said in the news, so I will say it here in hopes that it will help. Many of the chips used by the auto industry are produced by older semiconductor FABs. Large companies like Intel sell their older FABs to firms that sell to the auto industry. The auto industry likes buying chips that are super cheap as in a few dollars.
Since capacity is somewhat fixed by release of older FABs, there isn't an easy way to increase capacity. Secondly since the auto industry likes to pay only a few dollars for their chips there isn't much incentive for companies to create new capacity. Intel spends billions of dollars on building a new FAB. [1] Steppers for new FABs cost tens of millions, as an example of why a new FAB is so expensive. Intel has been making press announcements about building new FABs for the chip shortage. What Intel doesn't say is that none of those FABs will build chips for the automotive industry. Those FABs will build Intel's most expensive chips like Xeons that often cost more than $1K each.
I am not familiar with TSMC business model, but TSMC seems to contradict some of what I said: https://www.reuters.com/business/autos-transportation/tsmc-says-can-catch-up-with-auto-chip-demand-by-end-june-cbs-2021-05-03/ TSMC says they will be able to meet minimum level of demand by July. Don't know what "minimum level" or "minimum requirement" means.
Summary: The auto industry is acutely hurt by the semiconductor shortage because they like to pay only a few dollars for chips. Other industries that pay hundreds of dollars per chips like the graphics card industry will recover quicker. Daniel.Cardenas ( talk) 13:53, 1 June 2021 (UTC)
I believe we should stop citing the COVID 19 Pandemic as the cause of events that were instead spurred by the lockdowns. The pandemic did not mandate lockdowns; as evidenced by the Swedish approach. By citing the pandemic as the cause of the lockdown's woes, we are deflecting the blame from ourselves and to external events, making it easier to make the same mistakes in the future. — Preceding unsigned comment added by 2601:198:103:C620:D1B2:47CA:F1C2:A160 ( talk) 14:26, 9 October 2021 (UTC)
Should the name not be "2020-Present" Given the most obvious issues & pressures that won't be changed until at least 2022 in even the most optimistic scenarios? Daesin ( talk) 22:30, 10 December 2021 (UTC)
I agree, In my view the "2022" in the page title constitutes a forecast and I don't think anyone in the industry is willing to make that prediction. When new fabs are built to make up the shortfall, it takes 2 to 3 years for them to become productive. Finally, once all the companies who are presently building new fabs come online, there is likely to be an oversupply of chips. Dougp01 ( talk) 17:09, 21 January 2022 (UTC)
"Present" should be changed to "2022". Voproshatel ( talk) 18:48, 11 January 2023 (UTC)
Increase in anonymous hacking would have necessitated increased purchases and also broken many computers and phones in turn may have necessitated purchases since the gadgets have become a part of everyway life and increased hacking might have meant increased purchases and this in itself is a snowball effect / vicious cycle. — Preceding unsigned comment added by 122.174.166.128 ( talk) 17:21, 23 December 2021 (UTC)
I recently rewrote the paragraph regarding Gaming PCS and GPUS to be more general, and include information about other aspects of the pc building process being affected. I did this primarily because I wanted to include the fact that scalping has largely been one of the main causes of limited component availability, skimming through the article, I saw that this was mentioned under the Video Game consoles as well. To avoid redundancy, I think it would be best to consolidate what was said in both sections under a paragraph dedicated to scalping in the Causes section of the article. I would do it myself, but I'm still a novice when it comes to Wikipedia editing, and don't currently have the time. Thanks, Golira ( talk) 22:41, 20 April 2022 (UTC)
Hello all,
I noticed that this event is still listed as ongoing in the current events portal, yet this article has a section about recovery. Has the shortage ended?
(Edit 1/27/22: Typo)
Thank you, Spade6179 ( talk) 15:07, 13 January 2023 (UTC)
From early 2020,
- when the effects of and the mitigation of the COVID-19 pandemic caused disruptions in supply chains and logistics
which,
- coupled with a 13% increase in global demand for PCs
- owing to some countries' shift to a stay-at-home economy,
impacted the availability of key chips
- necessary for the manufacturing of a broad swathe of electronics.
This simplifies down to:
Or maybe:
It's my hobby lately to find these fattened geese on wikipedia, and then squeeze the goose into a parse tree. — MaxEnt 20:29, 18 January 2023 (UTC)
Coda: It took me a moment, but the technical problem is the word 'when', which subordinates the following verbiage. The core parse ought to be:
— MaxEnt 20:34, 18 January 2023 (UTC)
The chip shortage is over! That Russia and China have problems getting some Chips or equipment is not enough and not because there arent enough, not because of a shortage. The chip market is currently saturated and stocks for wafers and produduct are rising while new fabs, which were planned and built since 2020 are just starting to produce more product. Soon we will see an overproduction, a price war and some fabs will be sold or closed or re-purposed. It was quite clear from the beginning that the short term shortage will lead to overcapacities especially with US and EU both pushing their own chip industries to become less dependent on other countries.
The bubble is just starting and maybe in 2-3 years it will burst and companies will get bust. I can't really know the future, but I can see that overproduction already started. Do ut des ( talk) 20:14, 10 July 2023 (UTC)
The result of the move request was: moved. ( non-admin closure) - 🔥 𝑰𝒍𝒍𝒖𝒔𝒊𝒐𝒏 𝑭𝒍𝒂𝒎𝒆 (𝒕𝒂𝒍𝒌)🔥 13:55, 25 July 2023 (UTC)
2020–present global chip shortage → 2020–2023 global chip shortage – Global chip shortage does not seem to be a "current" issue anymore, with major sectors such as cars, game consoles and GPUs already being stable in supply. Theknine2 ( talk) 12:09, 18 July 2023 (UTC)
Change article name to sentence case, please. Nurg ( talk) 07:24, 13 March 2024 (UTC)
This article is rated Start-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||||||||||
|
This article links to one or more target anchors that no longer exist.
Please help fix the broken anchors. You can remove this template after fixing the problems. |
Reporting errors |
On 18 July 2023, it was proposed that this article be moved from 2020–present global chip shortage to 2020–2023 global chip shortage. The result of the discussion was moved. |
I worked at Intel for a few decades. I feel I know plenty about the semiconductor industry. I also worked with Intel's automotive division when it existed. Not much of this is said in the news, so I will say it here in hopes that it will help. Many of the chips used by the auto industry are produced by older semiconductor FABs. Large companies like Intel sell their older FABs to firms that sell to the auto industry. The auto industry likes buying chips that are super cheap as in a few dollars.
Since capacity is somewhat fixed by release of older FABs, there isn't an easy way to increase capacity. Secondly since the auto industry likes to pay only a few dollars for their chips there isn't much incentive for companies to create new capacity. Intel spends billions of dollars on building a new FAB. [1] Steppers for new FABs cost tens of millions, as an example of why a new FAB is so expensive. Intel has been making press announcements about building new FABs for the chip shortage. What Intel doesn't say is that none of those FABs will build chips for the automotive industry. Those FABs will build Intel's most expensive chips like Xeons that often cost more than $1K each.
I am not familiar with TSMC business model, but TSMC seems to contradict some of what I said: https://www.reuters.com/business/autos-transportation/tsmc-says-can-catch-up-with-auto-chip-demand-by-end-june-cbs-2021-05-03/ TSMC says they will be able to meet minimum level of demand by July. Don't know what "minimum level" or "minimum requirement" means.
Summary: The auto industry is acutely hurt by the semiconductor shortage because they like to pay only a few dollars for chips. Other industries that pay hundreds of dollars per chips like the graphics card industry will recover quicker. Daniel.Cardenas ( talk) 13:53, 1 June 2021 (UTC)
I believe we should stop citing the COVID 19 Pandemic as the cause of events that were instead spurred by the lockdowns. The pandemic did not mandate lockdowns; as evidenced by the Swedish approach. By citing the pandemic as the cause of the lockdown's woes, we are deflecting the blame from ourselves and to external events, making it easier to make the same mistakes in the future. — Preceding unsigned comment added by 2601:198:103:C620:D1B2:47CA:F1C2:A160 ( talk) 14:26, 9 October 2021 (UTC)
Should the name not be "2020-Present" Given the most obvious issues & pressures that won't be changed until at least 2022 in even the most optimistic scenarios? Daesin ( talk) 22:30, 10 December 2021 (UTC)
I agree, In my view the "2022" in the page title constitutes a forecast and I don't think anyone in the industry is willing to make that prediction. When new fabs are built to make up the shortfall, it takes 2 to 3 years for them to become productive. Finally, once all the companies who are presently building new fabs come online, there is likely to be an oversupply of chips. Dougp01 ( talk) 17:09, 21 January 2022 (UTC)
"Present" should be changed to "2022". Voproshatel ( talk) 18:48, 11 January 2023 (UTC)
Increase in anonymous hacking would have necessitated increased purchases and also broken many computers and phones in turn may have necessitated purchases since the gadgets have become a part of everyway life and increased hacking might have meant increased purchases and this in itself is a snowball effect / vicious cycle. — Preceding unsigned comment added by 122.174.166.128 ( talk) 17:21, 23 December 2021 (UTC)
I recently rewrote the paragraph regarding Gaming PCS and GPUS to be more general, and include information about other aspects of the pc building process being affected. I did this primarily because I wanted to include the fact that scalping has largely been one of the main causes of limited component availability, skimming through the article, I saw that this was mentioned under the Video Game consoles as well. To avoid redundancy, I think it would be best to consolidate what was said in both sections under a paragraph dedicated to scalping in the Causes section of the article. I would do it myself, but I'm still a novice when it comes to Wikipedia editing, and don't currently have the time. Thanks, Golira ( talk) 22:41, 20 April 2022 (UTC)
Hello all,
I noticed that this event is still listed as ongoing in the current events portal, yet this article has a section about recovery. Has the shortage ended?
(Edit 1/27/22: Typo)
Thank you, Spade6179 ( talk) 15:07, 13 January 2023 (UTC)
From early 2020,
- when the effects of and the mitigation of the COVID-19 pandemic caused disruptions in supply chains and logistics
which,
- coupled with a 13% increase in global demand for PCs
- owing to some countries' shift to a stay-at-home economy,
impacted the availability of key chips
- necessary for the manufacturing of a broad swathe of electronics.
This simplifies down to:
Or maybe:
It's my hobby lately to find these fattened geese on wikipedia, and then squeeze the goose into a parse tree. — MaxEnt 20:29, 18 January 2023 (UTC)
Coda: It took me a moment, but the technical problem is the word 'when', which subordinates the following verbiage. The core parse ought to be:
— MaxEnt 20:34, 18 January 2023 (UTC)
The chip shortage is over! That Russia and China have problems getting some Chips or equipment is not enough and not because there arent enough, not because of a shortage. The chip market is currently saturated and stocks for wafers and produduct are rising while new fabs, which were planned and built since 2020 are just starting to produce more product. Soon we will see an overproduction, a price war and some fabs will be sold or closed or re-purposed. It was quite clear from the beginning that the short term shortage will lead to overcapacities especially with US and EU both pushing their own chip industries to become less dependent on other countries.
The bubble is just starting and maybe in 2-3 years it will burst and companies will get bust. I can't really know the future, but I can see that overproduction already started. Do ut des ( talk) 20:14, 10 July 2023 (UTC)
The result of the move request was: moved. ( non-admin closure) - 🔥 𝑰𝒍𝒍𝒖𝒔𝒊𝒐𝒏 𝑭𝒍𝒂𝒎𝒆 (𝒕𝒂𝒍𝒌)🔥 13:55, 25 July 2023 (UTC)
2020–present global chip shortage → 2020–2023 global chip shortage – Global chip shortage does not seem to be a "current" issue anymore, with major sectors such as cars, game consoles and GPUs already being stable in supply. Theknine2 ( talk) 12:09, 18 July 2023 (UTC)
Change article name to sentence case, please. Nurg ( talk) 07:24, 13 March 2024 (UTC)