I keep hearing about the global chip shortage that is affecting auto manufacturers. But there are lots of different chips and I never see anything specific. Custom ASIC ? Memory chips ? cpu ? I would think that manufacturers try to standardize on parts, so I do not understand why there is a shortage.
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Custom chips. They design stuff to their needs and send it off to fab to be made. When COVID hit they thought the market was gonna go way down so they cancelled a lot of orders. Turns out the car market didnt drop as much as they thought, and with their orders cancelled they get moved to the back of the line that’s moving more slowly due to COVID. Facilities before the pandemic were pretty much already at 100% capacity as it was. Now reduce its capabilities where what was 100% would be say an impossible 130% and you start getting backorder.
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