Global chip shortage explained

[cst1992]

I'm 90% sure this must have been posted here before, but still; wanted to add my thoughts.

Everyone knows that the pandemic has caused factories to shut down and workers have been sent home temporarily/permanently.
However, in addition to this, there are some more points explained that are behind the scenes:

• 54% of the entire silicon market share?! That's bound to be a problem(and now it is). Hopefully we'll see other companies take up supply for their own devices(is the M1 chip an example of that?)
• Skyrocketing demand and shorter-than-usual supply. No wonder markets are in such terrible condition right now.
• I can be almost certain we'll see cheaper-than-normal(in other words, crashed) prices of PC components(and similar) because of all the investment that is happening in new facilities around the world, and as a result some of those will be closed down as well. Demand is certain to go back to pre-pandemic levels sooner or later, then who will buy the excess chips? Miners? Nah.

 

[TheoneandonlyMrK]

I'm 90% sure this must have been posted here before, but still; wanted to add my thoughts.

Everyone knows that the pandemic has caused factories to shut down and workers have been sent home temporarily/permanently.
However, in addition to this, there are some more points explained that are behind the scenes:

• 54% of the entire silicon market share?! That's bound to be a problem(and now it is). Hopefully we'll see other companies take up supply for their own devices(is the M1 chip an example of that?)
• Skyrocketing demand and shorter-than-usual supply. No wonder markets are in such terrible condition right now.
• I can be almost certain we'll see cheaper-than-normal(in other words, crashed) prices of PC components(and similar) because of all the investment that is happening in new facilities around the world, and as a result some of those will be closed down as well. Demand is certain to go back to pre-pandemic levels sooner or later, then who will buy the excess chips? Miners? Nah.

Short sighted in my opinion, the intelligent revolution has begun but it'll need brains.
54% for who, what Tsmc ,x86?!

I have not watched the video, but by your comments I
assume I'll disagree.

 

[cst1992]

TSMC has 54% market share for manufacturing chips for the entire world. And not just x86, but ALL of them, including the chips that go into cars and phones, and other smaller stuff.

the intelligent revolution has begun but it'll need brains

Eh?!

 

[joemama]

54%? That seems a little too high to me.

 

[cst1992]

There's a pie chart in the video.
And yeah, I agree. That's way too high for a single company. Imagine if it goes under. What then?

Also, if the news flash about the major capacitor manufacturers (e.g. Nippon ChemiCon) having to shut down their factories is true, then everything from PSUs to motherboards is about to get(and stay) expensive for a while.

 

[joemama]

That number is probably closer to a total of all the chip manufacturers in Taiwan, good thing that people in Taiwan know how to deal with viruses so that they aren't severely affected by the pandemic.

 

[cst1992]

The drought worries me more than the pandemic at this point.

 

[claes]

4.5 million dead < semiconductor shortage

 

[TheoneandonlyMrK]

TSMC has 54% market share for manufacturing chips for the entire world. And not just x86, but ALL of them, including the chips that go into cars and phones, and other smaller stuff.

Eh?!

And the M1, so copying apple would just bump Tsmc's output.


And AI = chips = brains.

 

[Tigger]

Or what happens if they put 20% on the price? Who else will they turn to to supply them.................................no one

 

[R-T-B]

Or what happens if they put 20% on the price? Who else will they turn to to supply them.................................no one

I think they just did that.

 

[Ferd]

Or what happens if they put 20% on the price? Who else will they turn to to supply them.................................no one

They can’t randomly demand more money, they are heavily dependent on other suppliers , from raw materials to complicated tools... that come from other countries

 

[las]

TSMC has 54% market share for manufacturing chips for the entire world. And not just x86, but ALL of them, including the chips that go into cars and phones, and other smaller stuff.

Eh?!

No they don't - TSMC is 3rd or 4th biggest semiconducter company

Intel 1st
Samsung 2nd

TSMC is expanding but so is Intel and Samsung. Intel's new megafactory is going to be huge.

 

[Tigger]

No they don't - TSMC is 3rd or 4th biggest semiconducter company

Intel 1st
Samsung 2nd

TSMC is expanding but so is Intel and Samsung. Intel's new megafactory is going to be huge.

Don't Intel only FAB for themselves though? I know Samsung don't

 

[R0H1T]

They most definitely are not losing billions! Just because you can sell more (chips) doesn't mean that every extra chip produced will actually be sold!

No they don't - TSMC is 3rd or 4th biggest semiconducter company

Intel 1st
Samsung 2nd

TSMC is expanding but so is Intel and Samsung. Intel's new megafactory is going to be huge.

That's not right, purely chip fabrication ~

• TSMC
• Intel (?)
• Samsung

This doesn't include NAND or DRAM, otherwise it's Sammy at the top! The numbers you quoted also include Intel's complete revenues IIRC, they don't disclose chip fabrication numbers separately.

 

[las]

Don't Intel only FAB for themselves though? I know Samsung don't

For now yep but they are already in talks with several automakers, wait time for many new cars at this point is more than 1 year due to chip shortage

It has hit TV market too, to some degree, ALOT of the new 2021 models have little or no stock (and keeps their retail pricing for longer)

Well I'm not sure, no-one can really be sure who's the biggest but most advanced RIGHT NOW is TSMC but Samsung and Intel is waking up and I don't expect TSMC to be the leader for long. However TSMC's best process is always reserved for Apple. Apple is TSMC's best customer by far. Apple spent billions and billions tru the years. Apple has a big part in where TSMC is today. Without Apple's money TSMC would not have had the funds to progress and improve almost yearly.

Intel's new mega factory is bleeding edge. Samsung spends billions on improving their processes too.

We might have chip abundance in some years haha ... this is what several analysts predict .. lets see