a question about the "chip shortage" for cars

[vash]

i cant comment on the validity of any shortage. i only know what i see. i see new car lots on the side of "empty". and i see used car prices stupid high.

i am in the market for a new ride. did the car manufacturers cease car production while the chips are backordered, or did they crank our a few hundred thousand cars and are waiting for the chips to arrive to be plugged in...(however a chip is installed)??

i saw a report that mid 2023 the car industry should come back to normal. will they be selling 2022 models as 23 year cars?

super confusing to me. all of it.

my old truck timing is awful. just awful. i'm thankful it is a toyota. but its getting a bit rough looking. i have never owned a car past 200k miles. probably since i like old jeeps and chevy s10'S. not the high mileage dream team for sure.

[stevej37]

I ordered my new Honda on 10-14 with the warning that the chip shortage might delay delivery.
Now, over 3 months later, it still isn't on the build sheet.

I've heard that some lots have new cars sitting, without the chips...and waiting.
I have no idea how they get them off the carrier with no chip.

[Shaun @ Tru6]

Intel is building a new chip manufacturing plant in OH to better control production and be less reliant on overseas supply chains. Initial investment is $20 billion and could reach $100 billion.

Car manufacturing has been way down for close to a year now.

[speeder]

Originally Posted by Shaun @ Tru6

Intel is building a new chip manufacturing plant in OH to better control production and be less reliant on overseas supply chains. Initial investment is $20 billion and could reach $100 billion.

Car manufacturing has been way down for close to a year now.

I'm really surprised that it costs that much to build a chip factory.

Not like it has to be on prime RE and admittedly I am not tech savvy but aren't they just small or tiny chips? Don't they make them in sweat shops in Asia? And how can there be a supply shortage for this long?

[wilnj]

Originally Posted by speeder

I'm really surprised that it costs that much to build a chip factory.

Not like it has to be on prime RE and admittedly I am not tech savvy but aren't they just small or tiny chips? Don't they make them in sweat shops in Asia? And how can there be a supply shortage for this long?

They’re manufactured in clean rooms although I can’t speak to the working conditions.

As far as the buildings themselves, the cost is in the environmental controls. Maintaining a large volume of air at the correct humidity and temperature takes a lot of equipment.

Factor in the speed at which they’re looking to do and they’re probably paying a premium of 25% for that, coupled with the already inflated costs of equipment and materials.

One thing we’ve not been good with in this country is thinking about what we will need.

[Shaun @ Tru6]

Intel's $20 bln Ohio factory could become world's largest chip plant

[PorscheGAL]

Originally Posted by vash

i am in the market for a new ride. did the car manufacturers cease car production while the chips are backordered, or did they crank our a few hundred thousand cars and are waiting for the chips to arrive to be plugged in...(however a chip is installed)??

I read a story a couple months ago that this is exactly what Ford was doing with their F150's. There was even some talk of shipping them to dealers to await the chips. No idea if that came to fruition.

That Intel factory won't be producing for some time; at least a couple years, I would think. It will not do much for this year but long term, we will see

[A930Rocket]

I’m building a house for a couple and the wife works for either Chevy or Ford. They were saying that they cannot get chips and are having to slow down production, if not a halt all together, until they can get chips.

In the same vein, we can’t get certain appliances because they are made with chips. Some leadtimes are two months to receive the appliance. For some appliances, they said they can’t deliver them at all.

[Zeke]

I think we need to dumb down a few things and use some analog. I don't need a toaster, etc. ad infinitum controlled by a micro chip. They are overused because they were cheap.

I read the story, too, about the OH factory. Kudos to Intel!

[wilnj]

Originally Posted by A930Rocket

I’m building a house for a couple and the wife works for either Chevy or Ford. They were saying that they cannot get chips and are having to slow down production, if not a halt all together, until they can get chips.

In the same vein, we can’t get certain appliances because they are made with chips. Some leadtimes are two months to receive the appliance. For some appliances, they said they can’t deliver them at all.

My understanding is that whatever is being manufactured, is for those products with the highest ROI.

Since the same microchip that operates the power doors on a work spec Colorado will also operate the power doors on a Yukon Denali XL, guess which one GM is making?

[GothingNC]

Originally Posted by Shaun @ Tru6

Intel's $20 bln Ohio factory could become world's largest chip plant

Will be up and running in 2025.

[speeder]

Originally Posted by GothingNC

Will be up and running in 2025.

That's forever from now in terms of easing the current supply chain issues.

[Jay Auskin]

The problem is, cars typically use "older" chips. No one would build a new "chip factory" just to supply older types of chips for cars. There are many more times of new electronics product produced versus autos.

[MysticLlama]

Depends on the chip if it holds the cars up completely or not. One of the things Tesla had problems with were commodity airbag modules, can't ship without those in there.

On the other hand, I read that the local Porsche dealer had 1 Cayenne steering wheel control module, and that's all that was missing from a batch they had. So you'd come in, they'd plug it in, adjust the steering wheel how you wanted it, remove it, and you could take delivery and get it reinstalled later if you could live with the fixed wheel temporarily.

What's weird to me is how separate they all are. I'd have thought a programmable ECU could replace a dozen little other things, but they've just all been being stamped out to do specific tasks so long that it's probably just the cheap and easy way to do it.

[Sooner or later]

Originally Posted by Jay Auskin

The problem is, cars typically use "older" chips. No one would build a new "chip factory" just to supply older types of chips for cars. There are many more times of new electronics product produced versus autos.

That is what I have heard.

[908/930]

Vash, pick up a bottle of wax/polish give your truck a good cleaning wax (or pay somebody else) and drive it for a couple more years, being in the weather down south I can't see it being that bad. 200k miles is not that much.

[Steve Carlton]

Vash, if you're looking to get another Toyota, you might not get as beat up as you think. Two good sources I know of:

Cody Carter at 714.617.3614 - Cody@TustinToyota.com
Longo Toyota - I think the biggest Toyota dealership in the world

It sounds like your current Tacoma is spanked out, but its value still might be on a bubble. Shop it online at carvana/shift/vroom/driveway/carmax .com

[rcooled]

Originally Posted by speeder

I'm really surprised that it costs that much to build a chip factory.

The equipment used to manufacture microchips is very specialized and very expensive. High-vacuum environments, precision gas-control & filtering technology, hazardous material handling, etc.

Originally Posted by Jay Auskin

No one would build a new "chip factory" just to supply older types of chips for cars.

Fabrication plants are able to turn out chips for many different applications using the same manufacturing equipment and processes. Sometimes, it only requires adjustments to the chemistry, the circuit design, and maybe the packaging to produce a chip with a completely different end use.

[Drbraunsr]

Took delivery of a new 2021 GMC Sierra AT4 ( a few weeks ago) -- loaded with every option from a chip standpoint.
Ordered in August as it came off the line, but needed chips. Sat in Ohio from October, retrofitted with chips in early December and shipped to Reno GMC after Xmas. Flew up to Reno from Los Angeles and made an epic roadtrip thru the great snowstorm down 395 back to LA.
I hear some of the Sierras are being taken by customers minus the seat heater chips, to be added later. Glad I had mine....

[HobieMarty]

I work at the Kia manufacturing plant in West Point Georgia. The chip shortage has had some effect here at times but I can tell you, we are rolling right along. It is Saturday night and I am at work at this very moment. We have had other parts shortages that have caused some early dismissals and schedule adjustments but as of right now it is full steam ahead.

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