Chip shortage ?

[Biker1mike]

GlobalFoundries set to make job cuts to cut operating costs

Contract chipmaker fails to detail numbers of layoffs or planned timeframe in email to staff

www.theregister.com

GlobalFoundries is planning job cuts to reduce overhead amid weakening demand for semiconductors.
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Say what ? Chip supply must be up if demand is down. Is the supply chain for automotive chips now a non-issue that the US mid-term elections are over ?

 

[DustyRusty]

Just like when Covid hit, manufacturers are cutting back on ordering new chips, so the chip producers are cutting back on production. The general consensus is that were are headed into a global recession and there is going to be a lot more layoff in businesses. Last night on the news they said that Amazon is going to be laying off 10,000 people. Yet, in Charlton MA they are building a gigantic warehouse state of a art 2.8 Million gross square foot industrial warehouse building with a 650,000± square foot building footprint. They are also building one in Worcester MA that is 121,212 SF and 1.3 million square feet in Fall River MA. Moving onto CT they have built a fulfillment center in Windsor, 1.2 million square feet. I just wonder how they are going to be able to support all these buildings financially if they have to lay off 10,000 people. There is only so much that a robot can do.

 

[Oil pan 4]

It's not so much of a chip shortage as a change over.
Every 10 years since the 1950s the chip industry has increased wafer size by 50%. This latest "shortage" was the industry going from 200mm to 300mm wafers. But this is probably the last change over as the transition from 200 to 300 was so slopy, delayed and expensive only the chip super powers are going to 450mm.
Solar manufacturers said they are staying with 200mm as all all their cell and panel formats are built around 200mm wafers, plus now they have an unlimited supply of almost free 200mm wafer machinery and tooling.
The problem is 10 years is long enough for everyone to forget about the change overs and every 10 years it's "what do you mean I can't get that old chip any more" again.

 

[Jchonline]

Just like when Covid hit, manufacturers are cutting back on ordering new chips, so the chip producers are cutting back on production. The general consensus is that were are headed into a global recession and there is going to be a lot more layoff in businesses. Last night on the news they said that Amazon is going to be laying off 10,000 people. Yet, in Charlton MA they are building a gigantic warehouse state of a art 2.8 Million gross square foot industrial warehouse building with a 650,000± square foot building footprint. They are also building one in Worcester MA that is 121,212 SF and 1.3 million square feet in Fall River MA. Moving onto CT they have built a fulfillment center in Windsor, 1.2 million square feet. I just wonder how they are going to be able to support all these buildings financially if they have to lay off 10,000 people. There is only so much that a robot can do.

Seasonal employees.

 

[Henro]

... Last night on the news they said that Amazon is going to be laying off 10,000 people. Yet, in Charlton MA they are building a gigantic warehouse state of a art 2.8 Million gross square foot industrial warehouse building with a 650,000± square foot building footprint....one in Worcester MA that is 121,212 SF and 1.3 million square feet in Fall River MA...

I just wonder how they are going to be able to support all these buildings financially if they have to lay off 10,000 people. There is only so much that a robot can do.

The buildings are probably automated extensively, and require less labor costs. Also, they are saving wages and benefits on 10,000 people. Guess they would rather spend that money on new warehouses rather than wages...

 

[GreensvilleJay]

yeah 'chip shortage'.... makes me giggle.
While the ones I've used for the past 8 years as my 'swiss army knife' for nearly every product IS 'out of stock'.. the substitute IS in stock. Actually a newer version, 100% compatible(both physically and code ) AND 1/2 the price !

re: Guess they would rather spend that money on new warehouses rather than wages...

YES, people are ,generally create a lot of problems, especially compared to a few 'robots'. Heck even McDonalds is getting rid of front line employees, Lots of stores have 'selfcheckout' lanes....

 

[hodge]

Just like when Covid hit, manufacturers are cutting back on ordering new chips, so the chip producers are cutting back on production. The general consensus is that were are headed into a global recession and there is going to be a lot more layoff in businesses. Last night on the news they said that Amazon is going to be laying off 10,000 people. Yet, in Charlton MA they are building a gigantic warehouse state of a art 2.8 Million gross square foot industrial warehouse building with a 650,000± square foot building footprint. They are also building one in Worcester MA that is 121,212 SF and 1.3 million square feet in Fall River MA. Moving onto CT they have built a fulfillment center in Windsor, 1.2 million square feet. I just wonder how they are going to be able to support all these buildings financially if they have to lay off 10,000 people. There is only so much that a robot can do.

They're also building one in Fishersville, VA. It's massive.

 

[MapleLeafFarmer]

maybe like the toilet paper shortage..... at start of covid rumors of shortages?? so people like my wife loaded up. The other day the wife said we still have about a 3 year supply in the basement so don't worry she said.

So... maybe their chip clients feared rumors or sale people trying to sell BIG under fear tactics so maybe they loaded up inventories. Great in the short run for the company and sales people but now orders dry up as their customers have stock piled under the fear mongering??

So like my place and toilet paper we don't need any for years so maybe same situation??

 

[GreensvilleJay]

There were a few 'triggers' for the 'chip shortage' and yes, 'hoarding' was one but 'engineers' didn't want to go to 'chip B' when told 'chip A' wasn't available.
When Motorola tried to stick it to 'little guys' back in the early 80's for the then super hot 68HC11 , saying you're not on the 'blue list' so you need to order 10,000 pieces..... I did some research(pre Internet) and found out Toshiba made the SAME chip ! Got samples 1 week later, sales guy said 'yup...both made in same factory...some get stamped 'M", others with a 'T'....
Most of my semi purchases were 'generic'... a part had 2-3 manufactures available from 5-6 vendors. never had an issue getting chips.

 

[JimmyJazz]

Just like when Covid hit, manufacturers are cutting back on ordering new chips, so the chip producers are cutting back on production. The general consensus is that were are headed into a global recession and there is going to be a lot more layoff in businesses. Last night on the news they said that Amazon is going to be laying off 10,000 people. Yet, in Charlton MA they are building a gigantic warehouse state of a art 2.8 Million gross square foot industrial warehouse building with a 650,000± square foot building footprint. They are also building one in Worcester MA that is 121,212 SF and 1.3 million square feet in Fall River MA. Moving onto CT they have built a fulfillment center in Windsor, 1.2 million square feet. I just wonder how they are going to be able to support all these buildings financially if they have to lay off 10,000 people. There is only so much that a robot can do.

I think Amazon hired 300,000 people last year. 10,000 too many I guess.