My Partial Opinion On The Supply Chain Crisis / Automotive Industry Micro-Chip Shortage
o
I’ve worked in the Transportation industry for
about 10 years part-time – so this is my partial opinion – lol !
o
The computer chip shortage is mostly affecting
the Automotive industry
o
After the WHO declared the COVID-19 Pandemic
official on March 11, 2020 – the Computer industry’s sales increased as people started
working from home (upgrading their IT)
o
The Automotive industry paused their
semiconductor orders & limited their forecasts
§
They didn’t want any leftover inventory (unsold
cars) – as everyday life & travel outside the home (as of Spring 2020) came with increased
restrictions
o
A key thing to note that chips in the Automotive
industry – when compared with chips in the Computer industry – are considered “older
tech” / older style chips
o The computer industry has far more modern chips – e.g. Apple M1 / M1 Pro / M1 Max / Intel i7
Apple is worth 2.807T vs GM @ 148.1B & Tesla @ 936.54B - it's not surprising that Apple's chip woes get less press than say GM or Ford or Tesla
o
Once the Automotive Industry catches up – or
receives their back ordered chips – they will have to first start completing
assembly of unfinished cars
o
Forecasts – again – will have to be slashed
& newer vehicles will roll out slower – probably up until early / middle
2023
o
Tier 1 / 2 / 3 / Auto manufacturers/ suppliers
of engines / transmissions / drivetrains / electric motors won’t be producing the
same volume due to backlog of unfinished inventory
o
Overseas Chip manufacturing is mostly in Taiwan
/ TSMC - so it seems fairly obvious most people will be watching what is happening in Taiwan - and China - in early 2022 .
o
