F-150 Production Cut Due to Chip Shortage (will it also apply to the 6G?)

North7

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I see guys don't want to talk about this topic, but it's real. I have to present in a meeting next week at work about the overall economic impact of this silicone shortage in everything from laptops to cars. This was a short turn around and is a red flag meeting for my industry.

What my folks have been researching now for a couple of weeks is exactly why? There are several theories, which is all boring and speculative, but the prediction is the impact may last for a few months due to backlog.

Can't get this current economic situation over fast enough!
You will not bore us tech geeks in the room. I can understand if the automotive manufactures cut back on orders during the pandemic, some of that has already been reported while some automotive manufactures did not cut back and they are fine.

One key is the foundries, like TSMC (Taiwan Semiconductor), if their incoming orders were cut they needed to find work to keep the line moving, billions of $$$ of CapEx equipment cannot sit idle.

Now depending on the contracts the automotive manufactures have with them, or a go between like Arrow Electronics, what contract language did they have to protect them from unforeseen events, most likely not much.
 

North7

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And now the pricing power is in the foundries hands.

TSMC and Taiwan chip peers weigh new price hikes for autos

TAIPEI -- Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, and Taiwanese peers are considering another round of price increases mainly on automotive chips, Nikkei learned Monday, as a global semiconductor shortage puts pricing power firmly on their side.

The hikes of up to 15% are being considered by Vanguard International Semiconductor, a TSMC subsidiary that makes auto chips, along with other Taiwanese players including No. 4 foundry United Microelectronics Corp.

If the Taiwanese suppliers do successfully negotiate higher prices, that would mark the rare case of two substantial hikes within just a few months, after a round of increases that began last fall. Their aggressiveness shows how they now occupy the driver's seat in price negotiations with automakers.
 

wvmtneer

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Part of the issue is the USA doesn’t make this crap here anymore. Covid should have taught is a valuable lesson. Make stuff here...
I am all for American made products, but prepare to pay a premium.
 

Limecreek

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3rd quarter recovery on my outlook plans.
 

MadMan4BamaNATL

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You will not bore us tech geeks in the room. I can understand if the automotive manufactures cut back on orders during the pandemic, some of that has already been reported while some automotive manufactures did not cut back and they are fine.

One key is the foundries, like TSMC (Taiwan Semiconductor), if their incoming orders were cut they needed to find work to keep the line moving, billions of $$$ of CapEx equipment cannot sit idle.

Now depending on the contracts the automotive manufactures have with them, or a go between like Arrow Electronics, what contract language did they have to protect them from unforeseen events, most likely not much.
You're correct. It's the Build just in Time model that has created the backlog. Too many economists (like me) and analysts predicted a widespread economic disruption; this did happen, but didn't last as long as predicted. idling these factories and the subsequent influx of new orders and restarts have created a perfect storm.

All told, the issues may only persist for another quarter, but the damage is done and not sure who Ford sources from, but that may be another wrinkle in the supplier drama.
 

MyATV

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And the American people continue to be played like a Stradivarius.🎻
 

Carolina Jim

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Ford saying chip shortage will reduce earnings from $3.5B to $2.5B...hard to imagine Bronco is unscathed:

General Motors on Wednesday reported fourth-quarter earnings that easily beat Wall Street expectations, but the company warned a global semiconductor chip shortage could cut its earnings by up to $2 billion this year.

GM’s crosstown rival, Ford Motor, last week said the shortage could lower its earnings by $1 billion to $2.5 billion this year. GM said the shortage would cost it between $1.5 billion and $2 billion.

General Motors (GM) earnings Q4 2020 (cnbc.com)
 

tshaw2009

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Bababooey

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My good friend works for a large Supplier of auto parts in a pretty high position. He said now that these chip companies can get top dollar from electronic companies they in a way put off the auto market. Automotive just does not pay enough. Supposedly a few companies in Arizona are scrambling to get them manufactured. He also said that all ford cut production by 50%. take it for what its worth.
 

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