Chip shortage explain this to me

[Blue Streak]

First off I am no computer guru. I limp by on what little I know. So if manufacturers are having trouble getting so called chips, how is it that these vehicles are being able to be moved around & shipped to other locations? Is it that some chips are available say as engine control but not to operate other specific features? Also are these chips that easy to install? If I understand correctly the semiconductor is just part of what the chip is made of. Just trying to learn. Thanks.

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[Grumpaw]

Just found this....
Manufacturers have found a new source of chips for new vehicles.....

 

[wanted33]

Like RP I don't know exactly what function these chips control. Ford at one time said they were going to start shipping chipless F-150's to dealers to relieve the back log of stored trucks. They would then send the chips to be installed by the dealer when they became available. The dealers couldn't sell the truck without the chip though. Last time I was at my dealer I asked my salepeson how they were doing right now. He said they have a couple chips, and if someone wanted to do a test drive they installed the chip in the truck they picked. That's gotta suck. I don't know when the supplier (in China of course) will be able to catch up since the fire there.

 

[Grumpaw]

Not really made in China, but in Taiwan, which is still independent. They are the largest manufacturer of "chips" which is one reason China wants to take them over...China cannot produce a decent "chip"
Production of chips went way down when the virus started cause no one was buying any vehicles. When the surge in buying started again, the production of chips was not able to start up quickly to meet demand. They (Taiwan) is probably a year from catching up with demand.
US producer of chips, Intel Corp, only produces about 15 % of worlds chips, and they are not even set up to produce vehicle chips in a large amount.
Additionally, remember....these companies are not just producing vehicle components....they're supplying chips for everything from your computer, phone, I-Pad, and coffee maker, for everyone...worldwide.

 

[VAMike]

"Chips" covers a lot of territory. There are probably hundreds of semiconductors in a modern vehicle. Some are commodity parts, some are specialized or even custom. The shortages are across the board: chips that you used to be able to buy off the shelf basically anywhere have disappeared, and the lead time for ordering a small run of a specialized chip has pushed into 2022 or later. Some manufacturers have responded to commodity chip shortages by simply redesigning their products to use whatever's available. Carmakers tend to not be that nimble, and the approvals to substitute components would probably take longer than the chip shortage. They can try to deliver cars with missing pieces. That might work if it's something like the radio that needs to be fixed later, probably doesn't work if it's the ABS or airbag controller. But if they go too far down that road the deferred cost of reimbursing dealer labor rates to finish every car they sell will kill them. The carmakers have got themselves into quite a pickle because most of them canceled orders when production slowed during covid, so they ended up at the back of the line when the put new orders in. And it's a long line. And they're in this weird place where they are dependent on semiconductors to make their product, and they're too big to be able to just buy odds and ends here and there, but they're not big enough consumers of semiconductors to make them a top customer of the chipmakers they way a tech company like apple or samsung is--would a chipmaker prioritize orders from apple (buying parts for 200+ million iphones a year) or ford (buying parts for a couple million vehicles a year)?

 

[towpro]

I read yesterday that ford decided to not send the trucks out without the modules.
but i also read that the F150 line was shutting down again.

 

[Grumpaw]

I looked it up...
A new vehicle may have up to 1000 chips installed in various components throughout the vehicle.
Some components, depending on what they control, may have up to 300 "chips".
Multiply that by all the manufacturers here and abroad.....equals alot of chips. And yet, as posted, it's only a small number compared to the hundreds of millions of everyday items made and sold everyday that require "chips".
Obviously the companies that make them cannot just turn a switch on and magically start production again.
It's all our (consumers) fault....we should have kept buying new vehicles even though we couldn't go out in them. Supply and demand....if we had bought, the supply would have kept up.
Shame Shame on us !!!

 

[Adventure Ranger]

I work in the heavy equipment industry. What many manufacturers are doing is prioritizing their allocation of "chips" for essential operation, and leaving accessory items to be installed / completed at a later date when parts become more readily available. Example: EECU and essential modules will be built and allow the equipment to be operational, some items like Adaptive Cruise, Power Windows, etc.. will be left inoperable, or just not installed at all until the parts are available. Units are being shipped with stickers and info sheets from the plants explaining this to the customer - with a commitment that it will be corrected when parts are available.
Last winter snowmobiles were shipped all over North America from all 4 manufacturers missing ski shocks, once they were available they were sent to the dealer for install. Same happened this summer with quads and SxS's. Global supply and demand VS Production ability after a global shut down due to the Pandemic.
There is also a global Rubber shortage looming and will be effecting everything with rubber in the next 6 months. ( if you think "chips" are a problem - think about everything that has rubber ! )

 

[tfisher15]

"Chips" covers a lot of territory. There are probably hundreds of semiconductors in a modern vehicle. Some are commodity parts, some are specialized or even custom. The shortages are across the board: chips that you used to be able to buy off the shelf basically anywhere have disappeared, and the lead time for ordering a small run of a specialized chip has pushed into 2022 or later. Some manufacturers have responded to commodity chip shortages by simply redesigning their products to use whatever's available. Carmakers tend to not be that nimble, and the approvals to substitute components would probably take longer than the chip shortage. They can try to deliver cars with missing pieces. That might work if it's something like the radio that needs to be fixed later, probably doesn't work if it's the ABS or airbag controller. But if they go too far down that road the deferred cost of reimbursing dealer labor rates to finish every car they sell will kill them. The carmakers have got themselves into quite a pickle because most of them canceled orders when production slowed during covid, so they ended up at the back of the line when the put new orders in. And it's a long line. And they're in this weird place where they are dependent on semiconductors to make their product, and they're too big to be able to just buy odds and ends here and there, but they're not big enough consumers of semiconductors to make them a top customer of the chipmakers they way a tech company like apple or samsung is--would a chipmaker prioritize orders from apple (buying parts for 200+ million iphones a year) or ford (buying parts for a couple million vehicles a year)?

Correct that the auto industry is not that big a user of chips in the market, only 9% based on Chip revenue. (from IEEE Magazine).
It is growing 10%/year though.

 

[Grumpaw]

Damn....1 1/2 years ago it was a toilet paper shortage....now it gonna be a rubber band shortage !!!

 

[AZRangerDood]

Taiwan Semiconductor Company is actually in the process of building a pretty large manufacturing facility not far from my home in North Phoenix. Probably will be sometime before it’s completed, but it should help alleviate this problem in the long run.

Also, for what it’s worth the chip shortage is impacting all sorts of electronics, not just those in the automobile industry. Things like smoke detectors, carbon monoxide detectors, gaming consoles, radios, and other household electronics. It’s insane how dependent we are on these things.

https://www.reuters.com/technology/...-has-started-arizona-chip-factory-2021-06-01/

 

[VAMike]

( if you think "chips" are a problem - think about everything that has rubber ! )

oh no, here come the rubber jokes

https://www.youtube.com/embed/NbqZPLVaquI?start=189&end=195

 

[halligan1201]

https://qz.com/2004569/the-global-chip-shortage-can-be-explained-by-the-bullwhip-effect/

 

[THLONE]

New Rangers wont come with the Ford Pass chip so you wont be able to use it. LOL

 

[Grumpaw]

oh no, here come the rubber jokes

https://www.youtube.com/embed/NbqZPLVaquI?start=189&end=195

Wubba Wubba Wubba !!!

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