Interesting Article On Automotive Chips

[OleFordGuy]

Thought this was interesting and gave some insight: https://www.reuters.com/business/au...-message-car-makers-your-turn-pay-2022-08-03/

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[MostlySafeBear]

Interesting article. I fully expected that the abstraction that automakers had with hand-waving about "suppliers" would be something that they would have to drop and get more directly engaged in.

"Ford has announced it will work with GlobalFoundries to secure its supply of chips. Mike Hogan, who heads GlobalFoundries’ automotive business, said more deals like that are in the pipeline with other car makers."

 

[DeeZee]

Thought this was interesting and gave some insight: https://www.reuters.com/business/au...-message-car-makers-your-turn-pay-2022-08-03/

Great article….thanks for posting

This is long overdue. Auto companies need to treat all suppliers like partners and not a commodity.

Personally I live this every day with the companies we work with. Some of my fellow executives expect me to grind them but I won’t because “ that is not how you treat a partner and maintain a relationship”

 

[Bob The Builder]

"It's an arrogant Industry. Sometimes it just bites them in the arse"., says the article. Truer words were never spoken.

 

[Aherpa]

Thought this was interesting and gave some insight: https://www.reuters.com/business/au...-message-car-makers-your-turn-pay-2022-08-03/

Supposedly, part of the 'chip' problem with American automotive manufacturers was that they canceled chip contracts at the start of 'the COVID reaction' because people were not buying new vehicles.

Some foreign auto manufacturers kept their contracts while other non-automotive manufacturers increased their orders and took up the chip manufacturers output. Since then, the American auto makers are without a contract, or their contracts are much smaller because the chip makers is at capacity making things for 'others'.

This article seems to confirm at least some of that.

 

[DeeZee]

Supposedly, part of the 'chip' problem with American automotive manufacturers was that they canceled chip contracts at the start of 'the COVID reaction' because people were not buying new vehicles.

Some foreign auto manufacturers kept their contracts while other non-automotive manufacturers increased their orders and took up the chip manufacturers output. Since then, the American auto makers are without a contract, or their contracts are much smaller because the chip makers is at capacity making things for 'others'.

This article seems to confirm at least some of that.

Yes cancelled orders / or reduced the original volume. JIT inventory management gone horribly wrong.

 

[CMOS]

Supposedly, part of the 'chip' problem with American automotive manufacturers was that they canceled chip contracts at the start of 'the COVID reaction' because people were not buying new vehicles.

Some foreign auto manufacturers kept their contracts while other non-automotive manufacturers increased their orders and took up the chip manufacturers output. Since then, the American auto makers are without a contract, or their contracts are much smaller because the chip makers is at capacity making things for 'others'.

This article seems to confirm at least some of that.

This is correct. I am IN the semiconductor industry, so I know. When the automotive industry cancelled their orders, the commercial electronics markets (laptops, Flat screen TV's, Surround sound systems, Cell Phones) greatly increased their orders, and they got what they wanted.

Once COVID started to wain, and people started buying cars again the automotive segments were told "so sorry, we're sold out for the next 2 years (paraphrasing).

It's a S**t sow for sure. Don't look for an improvement in semiconductor supply until at least late 2023 . . . .


CMOS

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