Results 1 to 4 of 4

Thread: Chip Shortages

  1. #1
    Senior Member Easto's Avatar
    Join Date
    Dec 2000
    Location
    So. California
    Posts
    5,371

    Angry Chip Shortages

    Wow,

    Both GM and Ford are going to be shutting down production for 2 weeks due to the shortage. I guess I really don't understand this issue. I would have thought that ramping up chip production would be quite easy. And... even if you can't get an ocean container to move on-time, you could surely airfreight tons of these things in order to avert any shutdown.

    Easto

  2. #2
    Administrator Philip's Avatar
    Join Date
    May 1999
    Location
    Jacksonville, Florida
    Posts
    11,089
    Blog Entries
    6
    Yep... The way I understand the problem is that they can't ramp up capacity easily. It takes a lot of time and money to add capacity (a year?) and there is recurring cost, so if demands slows your cost doesn't scale down. This is why they don't like to have much excess production capacity. With the current shortage, any new/US factories are a year+ away, and there may not be enough qualified people for the necessary jobs either. Bottom line it will take a while.

    I don't really understand why Micron (MU) stock is lagging considering all the demand, and the fact they're one of three DRAM manufacturers in the World.

  3. #3
    Senior Member Easto's Avatar
    Join Date
    Dec 2000
    Location
    So. California
    Posts
    5,371
    I watched an informative video today that tried to explain part of the problem. But, not matter what they said I still couldn't get over the reasons it's taking so long. Part of what they said was that when the virus hit they thought there would be a slowdown so they tapered back on chip production but with all the people at home needing chips for computers and everything else electronic that they were buying why they sat at home drained the supply. And the manufacturers don't want to ramp up in case there's another dip. But the thing is that there wasn't a dip, consumers still need more.

  4. #4
    Moderator YeOldeStonecat's Avatar
    Join Date
    Jan 2001
    Location
    Somewhere along the shoreline in New England
    Posts
    51,036
    Yeah ordering servers/workstations/laptops/network gear....getting frustrating. We're spreading our orders across quite a few different disties, when one gets some stock...it's often gone in hours. Prices fluctuating wildly!
    MORNING WOOD Lumber Company
    Guinness for Strength!!!

Similar Threads

  1. 8 Chip and 16 Chip SDRAM PC133?
    By Summit in forum Hardware & Overclocking
    Replies: 1
    Last Post: 10-20-05, 12:26 PM
  2. X-box mod chip
    By nightowl in forum General Discussion Board
    Replies: 3
    Last Post: 10-13-04, 08:40 AM
  3. idt chip
    By albertldee in forum Software Forum
    Replies: 2
    Last Post: 03-02-03, 06:29 PM
  4. AMD K6-2 366 chip MIA
    By Cameron203 in forum Hardware & Overclocking
    Replies: 2
    Last Post: 09-04-02, 05:44 PM
  5. Ram Chip
    By Bonskibon in forum Hardware & Overclocking
    Replies: 13
    Last Post: 08-11-01, 10:16 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •