TL;DR: Building a chip foundry is a slow, expensive and very complicated process. Current production lines are at their maximum and stretched thin across multiple industries, as more and more...
TL;DR: Building a chip foundry is a slow, expensive and very complicated process. Current production lines are at their maximum and stretched thin across multiple industries, as more and more objects these days come with chips in them (like cars).
That being said: Still a neat article explaining it coherently for anyone not in the picture.
I think a combination of COVID creating a brief supply slump and now there is a bubble of excess demand we don't have the capacity to eliminate on top of the already increased demand from stimulus...
I think a combination of COVID creating a brief supply slump and now there is a bubble of excess demand we don't have the capacity to eliminate on top of the already increased demand from stimulus cheques going towards people trying to entertain themselves in lockdown.
Honestly, I'm really skeptical about that explanation because it doesn't seem to be affecting everyone as much as it should. Both AMD and Apple get their chips largely made by TSMC, but wheras I...
Honestly, I'm really skeptical about that explanation because it doesn't seem to be affecting everyone as much as it should. Both AMD and Apple get their chips largely made by TSMC, but wheras I can order any of Apple's newly-launched products and expect them by the end of the month like everyone else, I literally can't find a PlayStation 5 that launched half a year ago because they can't get the parts from AMD fast enough.
It also doesn't really explain why it's affecting the legacy nodes that other industries rely on.
It's a difference in scale. Apple booked TSMC's ENTIRE 5nm production capacity a year in advance. Any and all 5nm chips coming out of TSMC go to Apple. The high end silicon shortage will have no...
It's a difference in scale. Apple booked TSMC's ENTIRE 5nm production capacity a year in advance. Any and all 5nm chips coming out of TSMC go to Apple. The high end silicon shortage will have no impact on Apple, although shortages in other components may according to their earnings report.
Apple earned more in just Q1 of this year (111b) than the entire market cap of AMD (95b).
To add to what stu2b50 said, I imagine that companies have different willingness to pay extra for on-time delivery. Apple for example has substantial financial weight to throw around, and loyal...
To add to what stu2b50 said, I imagine that companies have different willingness to pay extra for on-time delivery. Apple for example has substantial financial weight to throw around, and loyal customers that demand their products be available. Add on that apple is (according to my completely-out-the-ass estimate) the electronics company with the widest profit margin, and they can afford to pay extra. PS5s are much lower-grade products (not saying they're not worth it or anything) that are built to a price. They are engineered so that they can be cranked out in huge quantities for relatively cheap. Add on that Sony seems to want to hold on to their previous price promises I think, and they were probably previously already on the slimmest of margins because they want the consoles cheap so they can sell lots of games, and they just can't budge that much.
Last week, there was something about one Taiwanese chip factory being hindered by a local drought. Since then, I learned that this Taiwan Semiconductors Manufacturing Company absolutely dominates...
TSMC
Last week, there was something about one Taiwanese chip factory being hindered by a local drought. Since then, I learned that this Taiwan Semiconductors Manufacturing Company absolutely dominates the global market and makes every other microchip sold anywhere on Earth.
One side effect of a changing climate, I guess.
Anyway, it is high time to brush up our understanding of the supply chain of those magical gadgets.
TL;DR: Building a chip foundry is a slow, expensive and very complicated process. Current production lines are at their maximum and stretched thin across multiple industries, as more and more objects these days come with chips in them (like cars).
That being said: Still a neat article explaining it coherently for anyone not in the picture.
Remind me : why is there a shortage of chips in the first place ?
I think a combination of COVID creating a brief supply slump and now there is a bubble of excess demand we don't have the capacity to eliminate on top of the already increased demand from stimulus cheques going towards people trying to entertain themselves in lockdown.
Also people equipping themselves for remote work. I imagine that a lot of desk workers have corporate laptops that didn't have them before.
Honestly, I'm really skeptical about that explanation because it doesn't seem to be affecting everyone as much as it should. Both AMD and Apple get their chips largely made by TSMC, but wheras I can order any of Apple's newly-launched products and expect them by the end of the month like everyone else, I literally can't find a PlayStation 5 that launched half a year ago because they can't get the parts from AMD fast enough.
It also doesn't really explain why it's affecting the legacy nodes that other industries rely on.
It's a difference in scale. Apple booked TSMC's ENTIRE 5nm production capacity a year in advance. Any and all 5nm chips coming out of TSMC go to Apple. The high end silicon shortage will have no impact on Apple, although shortages in other components may according to their earnings report.
Apple earned more in just Q1 of this year (111b) than the entire market cap of AMD (95b).
To add to what stu2b50 said, I imagine that companies have different willingness to pay extra for on-time delivery. Apple for example has substantial financial weight to throw around, and loyal customers that demand their products be available. Add on that apple is (according to my completely-out-the-ass estimate) the electronics company with the widest profit margin, and they can afford to pay extra. PS5s are much lower-grade products (not saying they're not worth it or anything) that are built to a price. They are engineered so that they can be cranked out in huge quantities for relatively cheap. Add on that Sony seems to want to hold on to their previous price promises I think, and they were probably previously already on the slimmest of margins because they want the consoles cheap so they can sell lots of games, and they just can't budge that much.
Last week, there was something about one Taiwanese chip factory being hindered by a local drought. Since then, I learned that this Taiwan Semiconductors Manufacturing Company absolutely dominates the global market and makes every other microchip sold anywhere on Earth.
One side effect of a changing climate, I guess.
Anyway, it is high time to brush up our understanding of the supply chain of those magical gadgets.
Crypto miners are creating a supply crunch and COVID has constrained supply lines and slowed down production further.