The Two Biggest Chip Fabricators Are in [Sort Of] War Zones

Walt

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Intel has failed to produce chips with less than 10 nm details, which leave two companies doing it: Taiwan Semiconductor Manufacturing Company, and Samsung. trump just did not think it was important that chips be made in America(he is not interested in small things).

The danger here for the world economy is these are both in war zones... Well, sort of war zones. The Korean War never officially ended, and in theory could always start up again. Nor did the Chinese Civil War officially end.

Even without a full war, there are severe shortages. Japan is arguing with South Korea, and stopping shipments of needed chemicals. Taiwan is arguing with China, and missing shipments. Recently car factories have been shut for lack of computer chips. Car computer chips are the lowest margin, so the first to be cut.
 
The gathering failure of Intel in some ways looks a lot like the failure at BOEING.....it is just shocking how fast and how badly America has rotted out.
 
BTW: Taiwan has a major water shortage going on, which might become a Big Fucking Deal for the chip makers.
 
BTW: Taiwan has a major water shortage going on, which might become a Big Fucking Deal for the chip makers.

We all like to see multiple sources for the things we need. Two sources is not enough. There are an infinite number of unknown things that could go wrong.
 
The gathering failure of Intel in some ways looks a lot like the failure at BOEING.....it is just shocking how fast and how badly America has rotted out.

When Intel nearly missed the bus back in the 1990's, Clinton did whatever it took to keep America still in the running. I remember him using the Air Force to fly emergency needed equipment to its fabricating facility.

trump did not see the importance of keeping Intel in the running.
 
Embracing isolationism without the capability of comprehensive independence tends to cause problems.
Who could ever foresee that?
 
Intel has failed to produce chips with less than 10 nm details, which leave two companies doing it: Taiwan Semiconductor Manufacturing Company, and Samsung. trump just did not think it was important that chips be made in America(he is not interested in small things).

The danger here for the world economy is these are both in war zones... Well, sort of war zones. The Korean War never officially ended, and in theory could always start up again. Nor did the Chinese Civil War officially end.

Even without a full war, there are severe shortages. Japan is arguing with South Korea, and stopping shipments of needed chemicals. Taiwan is arguing with China, and missing shipments. Recently car factories have been shut for lack of computer chips. Car computer chips are the lowest margin, so the first to be cut.


"Strategic Industries and Economic Security"
https://www.bis.doc.gov/index.php/other-areas/strategic-industries-and-economic-security-sies

The Trumptopians will probably call this 'Communism', but we need to start ramping this up. (Especially in the area of 5G)
 
When Intel nearly missed the bus back in the 1990's, Clinton did whatever it took to keep America still in the running. I remember him using the Air Force to fly emergency needed equipment to its fabricating facility.

trump did not see the importance of keeping Intel in the running.

Intel managements lack of competence is so far as I know a more recent problem. They are now considering outsourcing manufacturing because just like BOEING they have lost competence at building the product they sell. Like BOEING they have also lost competence at designing the products they sell as well.
 
Intel managements lack of competence is so far as I know a more recent problem. They are now considering outsourcing manufacturing because just like BOEING they have lost competence at building the product they sell. Like BOEING they have also lost competence at designing the products they sell as well.

They are both high development cost industries, where they need to invest almost everything from this generation to develop the next generation. If even one generation goes wrong, it is a disaster that they may not be able to come back from. Both have been extremely competent in every generation, but one... Which is going to kill both if we allow them to die. Then Europe will make our planes, and East Asia will make our computer chips.

And of course the Vulture Capitalists in the Republican Party will rejoice. They only see companies as having any worth along a horizon of a year or so, so high development cost industries are terrible for them. trump will also rejoice, because he likes industries that he can borrow a lot of money, and walk off with it. American workers will be worse off, and there will be far less paid in taxes... But that is also a boon for Republicans.
 
They are both high development cost industries, where they need to invest almost everything from this generation to develop the next generation. If even one generation goes wrong, it is a disaster that they may not be able to come back from. Both have been extremely competent in every generation, but one... Which is going to kill both if we allow them to die. Then Europe will make our planes, and East Asia will make our computer chips.

And of course the Vulture Capitalists in the Republican Party will rejoice. They only see companies as having any worth along a horizon of a year or so, so high development cost industries are terrible for them. trump will also rejoice, because he likes industries that he can borrow a lot of money, and walk off with it. American workers will be worse off, and there will be far less paid in taxes... But that is also a boon for Republicans.

And you started so good too!
 
GM extends production cuts due to chip shortage, Stellantis warns of lingering pain

GM said it would extend downtime at plants in Fairfax, Kansas, and Ingersoll, Ontario, to at least mid-April, and in San Luis Potosi, Mexico, through the end of March. In addition, it will idle its Gravatai plant in Sao Paulo, Brazil, in April and May.

The Detroit automaker had previously extended production cuts at three North American plants into mid-March and said vehicles at two other plants would only be partially built. Following Wednesday’s cuts, forecasting firm AutoForecast Solutions estimated GM could lose more than 216,000 units globally due to the shortage.
https://www.reuters.com/article/us-...-to-semiconductor-chip-shortage-idUSKBN2AV1QS
 
Yes, I mentioned that. Car computer chips are the lowest margin computer chips, so are the first to show shortages.

If there are problems in either Korea, or Taiwan, it will get far, far worse.

I tend To doubt that very many people know that China went from being concerned about keeping people employed, about the pressures this would put on the political system, to having a massive labor shortage because the factories are overloaded with orders Post Pandemic.

Also know that the American ports are overloaded, there are now routinely 40/50/60 ships waiting at sea to get into the Southern California ports...China and Asia has certainly won the Pandemic, and big!

That's the problem....too many Westerners with money and lots of time on their hands because they now either work from home and dont have commute time, or they dont work at all.

And they are buying all kinds of shit!
 
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