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Drudge Retort: The Other Side of the News
Saturday, September 25, 2021

The global semiconductor shortage that has paralyzed automakers for nearly a year shows signs of worsening, as new coronavirus infections halt chip assembly lines in Southeast Asia, forcing more car companies and electronics manufacturers to suspend production.

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Related...

Nike Call Shows How Complicated and Messy Logistics Have Become
www.bloomberg.com

...Nike cut its revenue forecast and warned of inventory shortages in the coming months that will affect its business across regions. The mess stems from long shipping times and factories that have been forced to halt production due to Covid-related lockdowns. That's left management searching for answers.

Executives said they didn't anticipate that the situation would worsen over the last 90 days, with government shutdowns in Vietnam and Indonesia and bottlenecks clogging transit around the world.

They went into extraordinary detail to explain the situation to investors and analysts. Friend said 80% of Nike's shoe factories in Vietnam and nearly half of its apparel plants are closed, causing the loss of 10 weeks of production thus far. It'll take several months to get back to full capacity.

Shipping times, meanwhile, have doubled across key routes from Asia to North America because of congestion at ports and railways, plus labor shortages. Goods that used to take 40 days to ship across the planet now take 80 days, leaving products stuck in transit for months. Margins have been hurt by rising ocean-freight surcharges....



Just the flu, indeed....

#1 | Posted by LampLighter at 2021-09-25 02:21 PM | Reply

More vaccines being minted ... less chips available for tech products.
Coincidence? ;)

#2 | Posted by GOnoles92 at 2021-09-25 03:07 PM | Reply | Funny: 4

Why Your New Couch Will Be Delivered Only in 2022
www.bloomberg.com

...Anthropologie's "Mirren" modular, one-arm sofa costs $2,398. It's made from a chunky basketweave material and would look great in pretty much any living room. The catch? It won't be ready to ship until March.

The "Darcy" sofa that Ashley HomeStores says has "fine lines and great curves," on sale for $369.99, also features a wait time of up to 14 weeks.

And in Britain, Ikea's gray "Bondholmen" outdoor table with six chairs costs 620 pounds ($858) and would be perfect for al fresco dining on a budget. But it's completely unavailable for delivery and out of stock from Belfast to Birmingham.

Across the U.S., U.K. and a number of other countries, extremely long delivery times are leaving furniture shoppers fuming. People trying to buy new couches, yard furniture and even cribs have found themselves staring at delivery dates far out into the future....


#3 | Posted by LampLighter at 2021-09-25 04:49 PM | Reply

Price gouging at its worst.

#4 | Posted by a_monson at 2021-09-25 06:23 PM | Reply

Re 3. It seems to be hit or miss.

I just got a couch delivered from Costco. No problem.

Last year tho I tried to get a large screen TV delivered from Costco in mid November. But it was too close to Christmas apparently. Not only did I not get the tv by Christmas and I didn't finally get it until mid January of the next year. And on top of that I got doubled billed. What a mess. Took about two months to finally get it sorted out and my charge card credited.

That was in the beginnings of the last surge in infections. We are apparently there all over again.

#5 | Posted by donnerboy at 2021-09-25 06:35 PM | Reply

Bought my car off the lot in August. Prices were already jacked up a lot on the 2022 models. I got a 2021 model, even that one was 500 + retail. Dealers are going to start going out of business if they don't have cars to sell.

#6 | Posted by dibblda at 2021-09-26 12:52 AM | Reply

So how is that just-in-time production working out for ya? The corporate world has figured out how to save pennies by reducing inventory and scouting out the cheapest labor in the third world countries, and now they are having a bit of trouble with their convoluted supply chains and shipping. At least we were able to trade all of our good manufacturing jobs for cheap crap at walmart.

#7 | Posted by bus_driver at 2021-09-26 09:41 AM | Reply

"Why Your New Couch Will Be Delivered Only in 2022"

I'm having this problem right now. Can't get a couch delivered until November. Probably going to have to buy a rinky dink futon and relegate it to the office once the couch arrives.

#8 | Posted by snoofy at 2021-09-26 09:49 AM | Reply

So Covid is solving rampant consumerism, climate change and culling fascists? Time to fund the next variant.

#9 | Posted by bored at 2021-09-26 10:03 AM | Reply

So Covid is solving rampant consumerism, climate change and culling fascists? Time to fund the next variant.

#9 | Posted by bored at 2021-09-26 10:03 AM

That variant is already in the US. It's called Mu and originated in Peru. From what I'm hearing through a department head at a major hospital, research is already underway in how to deal with it. Since much of the details are confidential in many aspects, I'm not given specifics, but a general overall. The news is not good, if what I hear is correct.

----------------------------------------------

Right as the original covid was starting to hit the US, I bought a new truck. It appears I got lucky all the way around. Good price, good vehicle, no problem with delivery. Now that they are desperate for used vehicles, they've offered to buy it back at more than I paid for it. That would not help me as then I'd have to buy a higher priced vehicle to replace it.

The cheap prices that come from chain stores such as Walmart and other corporations of world trade are now showing the true costs of such economic insanity. Manufacturing domestically is at an all time low when we really need it. The prices now having to be paid along with the waits for delivery time show just how much we've lost while giving 3rd world counties our money and production and our workers do without good paying jobs that was provided by such production.

#10 | Posted by BBQ at 2021-09-26 10:26 AM | Reply

@#7 ... So how is that just-in-time production working out for ya? ...

That is a significant issue.

Especially going into the holiday season where stores generate most of their profits.

Back in the 70's when I worked in the toy department of a store, the Christmas stock had arrived and was in the store room by the end of August.

Now with "just in time" inventories, the Christmas stock this year, if the stores are lucky, is probably sitting in a container somewhere on the Pacific.

#11 | Posted by LampLighter at 2021-09-26 11:31 AM | Reply

This is not good as I see a ripple effect to businesses that don't even use chips.
I work in manufacturing where a large part of are products are used in the automotive industry and business is slower than I've ever seen it.
Right now I'm working two 4 day weeks, a 5 days week then laid off for a week. And that's after cutting 35% of the department over the last year.
I was planning on building an addition on to my house but first the price of lumber held me back and now it's the loss of pay.

#12 | Posted by ScottE at 2021-09-26 11:38 AM | Reply

Related...

Chipmakers to carmakers: Time to get out of the semiconductor Stone Age
fortune.com

...When it comes to the electronic circuits that power our everyday lives, the automobile is simultaneously the world's most expensive consumer good and the one that runs on the cheapest possible semiconductor chips.

Moore's law of ever-increasing miniaturization seemingly never reached the automotive industry. Dozens of chips found in everything from electronic brake systems to airbag control units tend to rely on obsolete technology often well over a decade old. These employ comparatively simple transistors that can be anywhere from 45 nanometers to as much as 90 nanometers in size, far too large"and too primitive"to be suitable for today's smartphones.

When the pandemic hit, replacement demand for big-ticket items like new cars was pushed back while sales of all kinds of home devices soared. When the car market roared back months later, chipmakers had already reallocated their capacity.

Now these processors are in short supply, and chipmakers are telling car companies to wake up and finally join the 2010s.

"I'll make them as many Intel 16 [nanometer] chips as they want," Intel chief executive Pat Gelsinger told Fortune last week during his visit to an auto industry trade show in Germany....



#13 | Posted by LampLighter at 2021-09-26 12:04 PM | Reply

The absolutely should not miniaturize the chip hardware on cars. Smaller ICs are subject to more failures. Unless they do something like the space shuttle where three computers are running and watching for failures on one of them this is a terrible idea.

#14 | Posted by dibblda at 2021-09-27 11:59 AM | Reply

I think this shortage is quite deliberate.

#15 | Posted by Whatsleft at 2021-09-27 02:57 PM | Reply

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