Industry chip shortage
#19
My understanding is, the new Mustang Mach-E has more than 3,000 chips. Teslas can have as many as 8,000.
Car manufacturers cut forecasts dramatically; the chip foundries (TSMC and Renesas are the biggies) switched production.
The car market bounced back quickly, which left manufacturers with their pants down.... Oops.
Renesas had a big fire; TSMC had to deal with a flood.
Change over from one chip type to another can take months. New fabs are focusing on smaller tech node, which is not appropriate for autos.
By the way, a new wafer fab costs $10M to $15M to build and takes 1.5 years.
There is much more, including political issues; I will not get into specifics.
Car manufacturers cut forecasts dramatically; the chip foundries (TSMC and Renesas are the biggies) switched production.
The car market bounced back quickly, which left manufacturers with their pants down.... Oops.
Renesas had a big fire; TSMC had to deal with a flood.
Change over from one chip type to another can take months. New fabs are focusing on smaller tech node, which is not appropriate for autos.
By the way, a new wafer fab costs $10M to $15M to build and takes 1.5 years.
There is much more, including political issues; I will not get into specifics.
Last edited by JeffKeryk; 08-20-21 at 12:33 PM.
#20
My understanding is, the new Mustang Mach-E has more than 3,000 chips. Teslas can have as many as 8,000.
Car manufacturers cut forecasts dramatically; the chip foundries (TSMC and Renesas are the biggies) switched production.
The car market bounced back quickly, which left manufacturers with their pants down.... Oops.
Renesas had a big fire; TSMC had to deal with a flood.
Change over from one chip type to another can take months. New fabs are focusing on smaller tech node, which is not appropriate for autos.
By the way, a new wafer fab costs $10M to $15M to build and takes 1.5 years.
There is much more, including political issues; I will not get into specifics.
Car manufacturers cut forecasts dramatically; the chip foundries (TSMC and Renesas are the biggies) switched production.
The car market bounced back quickly, which left manufacturers with their pants down.... Oops.
Renesas had a big fire; TSMC had to deal with a flood.
Change over from one chip type to another can take months. New fabs are focusing on smaller tech node, which is not appropriate for autos.
By the way, a new wafer fab costs $10M to $15M to build and takes 1.5 years.
There is much more, including political issues; I will not get into specifics.
#21
#22
Agreed 100%, this is why I welcome rising car and fuel prices. Half the people would be better off using public transportation and should be saved from themselves.
#23
#24
They could design circuits where one chip is responsible for a multitude of operations instead of using thousands of individual chips. The reason they are using so many chips is partly to make it more difficult for independent shops to provide repairs, they encode each part with vin number that only the dealer has the equipment to program. May be a blessing in disguise if the shortage persists.
#26
They could design circuits where one chip is responsible for a multitude of operations instead of using thousands of individual chips. The reason they are using so many chips is partly to make it more difficult for independent shops to provide repairs, they encode each part with vin number that only the dealer has the equipment to program. May be a blessing in disguise if the shortage persists.
#27
#28
Can't talk to the extent, but to some extent everyone is doing it. Car wizard talked about LS460 he couldn't repair brake cylinder because of this for instance. I have a mercedes metris for my business, and the driver was carrying some metal tubes that slid and broke AC control panel. Bought the new panel, plugged it in but it wouldn't turn on - hard to be vin coded at the dealer, ~$400 for min 2 hours labor. It's little wonder they put 5 cent chips into every little part with encrypted vin code.
#29
They could design circuits where one chip is responsible for a multitude of operations instead of using thousands of individual chips. The reason they are using so many chips is partly to make it more difficult for independent shops to provide repairs, they encode each part with vin number that only the dealer has the equipment to program. May be a blessing in disguise if the shortage persists.
Can't talk to the extent, but to some extent everyone is doing it. Car wizard talked about LS460 he couldn't repair brake cylinder because of this for instance. I have a mercedes metris for my business, and the driver was carrying some metal tubes that slid and broke AC control panel. Bought the new panel, plugged it in but it wouldn't turn on - hard to be vin coded at the dealer, ~$400 for min 2 hours labor. It's little wonder they put 5 cent chips into every little part with encrypted vin code.
The real reason manufacturers use so many chips has more to do with their lack of vertical integration. They buy modules from suppliers (i.e. safety systems) and have to make them all talk to each other (i.e. safety systems to brakes, instrument cluster, etc.). Prior to the pandemic manufacturers were already talking about writing their own operating systems to standardize and better integrate all of the various systems in their cars. Volkswagen publicly said their Arteon (depending on options) could have up to 70 different control units operating with software from 200 suppliers with them all needing to be networked.