Chip

Big Automotive Chip Shortage Is No Surprise

“Car Makers Collide With Global Chip Shortage” (Page One, Feb. 13) correctly identifies the auto industry’s current supply-chain woes as a self-inflicted wound. From the electronics-manufacturing industry’s point of view, automotive is mostly a low-volume, high-mix customer segment, and it requires buffering through component distributors. Instead, the auto makers’ extreme focus on cost optimization and lean manufacturing meant eliminating these valuable supply-chain partners. The focus on lean should have been balanced with a pragmatic view on the extreme cost of idled automotive production lines. To shut down production lines for $80,000 vehicles because of a missing $2 microcontroller is catastrophic.

Products like semiconductors that have longer lead times and large production lot sizes need distribution for efficient buffering between the manufacturers and end customers. Semiconductors have extremely long and complex production cycles that can range from 10 to 26 weeks. Once a production cycle

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Foxconn chairman says expects ‘limited impact’ from chip shortage on clients

TAIPEI – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd

“Therefore, the impact on these large customers is there, but limited,” he told reporters.

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Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The global spread of COVID-19

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Biden Team Pressing Taiwan, Allies on Auto Chip Shortfall

(Bloomberg) — President Joe Biden’s top economic adviser, Brian Deese, has sought the Taiwanese government’s help resolving a global semiconductor shortage that’s idling U.S. car manufacturing plants, according to a letter reviewed by Bloomberg News.

In the letter, Deese thanked Taiwan’s minister of economic affairs, Wang Mei-hua, for her personal engagement on the microchips shortage and relayed concerns from U.S. automotive companies.

Deese’s letter shows that top White House officials have become involved in trying to resolve the shortage, which has presented an early challenge to Biden’s administration. Deese, the director of the National Economic Council, as well as National Security Adviser Jake Sullivan are both personally engaged in the effort to address bottlenecks in auto companies’ supply chains, a White House spokesperson said.

The spokesperson asked not to be identified by name because the talks have been private. Wang told reporters Thursday that she hasn’t received a letter from

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Volkswagen Points Finger at Suppliers Over Car Chip Shortage | Investing News

By Jan Schwartz and Christoph Steitz

FRANKFURT (Reuters) – Volkswagen said bad planning on the part of its suppliers has compounded a computer chip shortage blighting the global auto industry, claiming it gave ample notice that the coronavirus’ hit to car production would be limited.

VW was in December the first carmaker to warn of a chip supply crunch that has hit global automakers, forcing them to cut or halt production as the semiconductor industry struggles to keep up with a recovery in the car sector.

The German company told its suppliers in April last year – when much of global car production was idled due to the coronavirus pandemic – that it expected a strong recovery in the second half of 2020, a VW executive, who declined to be named, told Reuters.

Volkswagen, the world’s second-largest carmaker, says it was made aware of the chip shortage by one of

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