{"id":33668,"date":"2021-09-16T16:45:01","date_gmt":"2021-09-16T20:45:01","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=33668"},"modified":"2021-09-16T16:45:01","modified_gmt":"2021-09-16T20:45:01","slug":"global-chip-shortage","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2021\/09\/16\/global-chip-shortage\/","title":{"rendered":"Global Chip Shortage"},"content":{"rendered":"

Nilay Patel<\/a> (Decoder<\/a>):<\/p>\n

\n

Since the beginning of the pandemic, the demand for microchips has far exceeded supply, causing problems in every industry that relies on computers.<\/p>\n

[…]<\/p>\n

My guest today is Dr. Willy Shih<\/a>. He’s the professor of management practices at Harvard Business School. He’s an expert on chips and semiconductors — he spent years working at companies like IBM and Silicon Graphics. And he’s also an expert in supply chains — how things go from raw materials to finished products in stores. Willy’s the guy that grocery stores and paper companies called in March 2020 when there was a run on toilet paper<\/a>. If anyone’s going to explain this thing, it’s going to be Willy.<\/p>\n<\/blockquote>\n\n

Ian King et al.<\/a> (via Hacker News<\/a>):<\/p>\n

Building an entry-level factory that produces 50,000 wafers per month costs about $15 billion. Most of this is spent on specialized equipment—a market that exceeded $60 billion in sales for the first time in 2020.<\/p>\n

Three companies—Intel, Samsung and TSMC—account for most of this investment. Their factories are more advanced and cost over $20 billion each. This year, TSMC will spend as much as $28 billion on new plants and equipment. Compare that to the U.S. government’s attempt to pass a bill supporting domestic chip production. This legislation would offer just $50 billion over five years.<\/p>\n

Once you spend all that money building giant facilities, they become obsolete in five years or less. To avoid losing money, chipmakers must generate $3 billion in profit from each plant. But now only the biggest companies, in particular the top three that combined generated $188 billion in revenue last year, can afford to build multiple plants.<\/p><\/blockquote>\n\n

Yang Jie et al.<\/a> (via John Gruber<\/a>):<\/p>\n

Taiwan Semiconductor Manufacturing Co. plans to increase the prices of its most advanced chips by roughly 10%, while less advanced chips used by customers like auto makers will cost about 20% more, these people said. The higher prices will generally take effect late this year or next year, the people said.<\/p><\/blockquote>\n\n

Horace Dediu<\/a>:<\/p>\n

\n

IPhone 13 pricing is same as 12. So much for new pricing due to semiconductor shortages.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"

Nilay Patel (Decoder): Since the beginning of the pandemic, the demand for microchips has far exceeded supply, causing problems in every industry that relies on computers. […] My guest today is Dr. Willy Shih. He’s the professor of management practices at Harvard Business School. He’s an expert on chips and semiconductors — he spent years […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2021-09-16T20:45:04Z","apple_news_api_id":"c902eb6f-4821-42e4-a9ce-8194fcc0e235","apple_news_api_modified_at":"2021-09-16T20:45:04Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AyQLrb0ghQuSpzoGU_MDiNQ","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[101,1931,452,260,1224,1997],"class_list":["post-33668","post","type-post","status-publish","format-standard","hentry","category-technology","tag-business","tag-covid-19","tag-hardware","tag-processors","tag-sony-playstation","tag-xbox"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/33668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=33668"}],"version-history":[{"count":1,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/33668\/revisions"}],"predecessor-version":[{"id":33669,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/33668\/revisions\/33669"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=33668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=33668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=33668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}