Cars and the chip shortage...

C

Commander Kinsey

Guest
Since microchips are such a small part of a car, how can the chip shortage be affecting them? Won\'t they just pay more for the chips and get them before other uses? Tripling the chip price in a car is nothing compared to the whole car price.
 
On Thursday, June 29, 2023 at 9:25:00 PM UTC-7, Commander Kinsey wrote:
> Since microchips are such a small part of a car, how can the chip shortage be affecting them? Won\'t they just pay more for the chips and get them before other uses? Tripling the chip price in a car is nothing compared to the whole car price.

The market price will eventually cause more chips to be made. That\'s about
a year, maybe two years, from now. Auto assembly lines are idle for a year, maybe...

When \"they\" #1 pays more and gets a delivery of chips, \"they\" #2 gets their delivery
date missed, and if the contract for delivery says \'time is of the essence....\' a
court will decide penalties. So, \"they\" #1 finds no one ready to take their money.
 
On 30-06-2023 06:24, Commander Kinsey wrote:
Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.
 
On a sunny day (Fri, 30 Jun 2023 12:02:08 +0200) it happened Klaus Vestergaard
Kragelund <klauskvik@hotmail.com> wrote in <u7m970$2grre$1@dont-email.me>:

On 30-06-2023 06:24, Commander Kinsey wrote:
Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

And so can one big EMP.
And the world comes to a standstill.

Horses!
Donkeys?
 
On Fri, 30 Jun 2023 11:21:37 +0100, Jan Panteltje <alien@comet.invalid> wrote:

On a sunny day (Fri, 30 Jun 2023 12:02:08 +0200) it happened Klaus Vestergaard
Kragelund <klauskvik@hotmail.com> wrote in <u7m970$2grre$1@dont-email.me>:

On 30-06-2023 06:24, Commander Kinsey wrote:
Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

And so can one big EMP.
And the world comes to a standstill.

Horses!
Donkeys?

I\'m going to live off grid.
 
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klauskvik@hotmail.com> wrote:

On 30-06-2023 06:24, Commander Kinsey wrote:
Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.
 
On Sunday, July 2, 2023 at 3:31:03 AM UTC+10, Commander Kinsey wrote:
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klau...@hotmail.com> wrote:
On 30-06-2023 06:24, Commander Kinsey wrote:

Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.

Bit it\'s also easier to redesign the car to use a different chip or several smaller chips - a graphics card is much more of a one-trick pony.

--
Bill Sloman, Sydney
 
søndag den 2. juli 2023 kl. 13.31.13 UTC+2 skrev Anthony William Sloman:
On Sunday, July 2, 2023 at 3:31:03 AM UTC+10, Commander Kinsey wrote:
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klau....@hotmail.com> wrote:
On 30-06-2023 06:24, Commander Kinsey wrote:

Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.
Bit it\'s also easier to redesign the car to use a different chip or several smaller chips - a graphics card is much more of a one-trick pony.

you don\'t just change to a different mcu in a car either
 
On Friday, June 30, 2023 at 12:25:00 AM UTC-4, Commander Kinsey wrote:
> Since microchips are such a small part of a car, how can the chip shortage be affecting them? Won\'t they just pay more for the chips and get them before other uses? Tripling the chip price in a car is nothing compared to the whole car price.

Physically small, yes; functionally small, no. Electronics makes the car work. I call that a pretty BIG part.

You can\'t buy something that doesn\'t exist. The Japanese had two major plants burn down, which really inflicted a hard knock to the supply chain. The really big producer, that Taiwan Semiconductor, also ran into some kind of problem. That\'s the risk you take when you run everything up to redline. Stuff goes wrong and the consumers are seriously disrupted.
 
On Sunday, July 2, 2023 at 7:59:55 AM UTC-4, Lasse Langwadt Christensen wrote:
søndag den 2. juli 2023 kl. 13.31.13 UTC+2 skrev Anthony William Sloman:
On Sunday, July 2, 2023 at 3:31:03 AM UTC+10, Commander Kinsey wrote:
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klau....@hotmail.com> wrote:
On 30-06-2023 06:24, Commander Kinsey wrote:

Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.
Bit it\'s also easier to redesign the car to use a different chip or several smaller chips - a graphics card is much more of a one-trick pony.

you don\'t just change to a different mcu in a car either

That\'s exactly what Tesla did.

--

Rick C.

- Get 1,000 miles of free Supercharging
- Tesla referral code - https://ts.la/richard11209
 
søndag den 2. juli 2023 kl. 20.34.45 UTC+2 skrev Ricky:
On Sunday, July 2, 2023 at 7:59:55 AM UTC-4, Lasse Langwadt Christensen wrote:
søndag den 2. juli 2023 kl. 13.31.13 UTC+2 skrev Anthony William Sloman:
On Sunday, July 2, 2023 at 3:31:03 AM UTC+10, Commander Kinsey wrote:
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klau...@hotmail.com> wrote:
On 30-06-2023 06:24, Commander Kinsey wrote:

Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars.. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.
Bit it\'s also easier to redesign the car to use a different chip or several smaller chips - a graphics card is much more of a one-trick pony.

you don\'t just change to a different mcu in a car either
That\'s exactly what Tesla did.

I\'ve sure it wasn\'t \"just change\" unless it was some arm soc running the touch screen and UI
 
On Sunday, July 2, 2023 at 2:55:29 PM UTC-4, Lasse Langwadt Christensen wrote:
søndag den 2. juli 2023 kl. 20.34.45 UTC+2 skrev Ricky:
On Sunday, July 2, 2023 at 7:59:55 AM UTC-4, Lasse Langwadt Christensen wrote:
søndag den 2. juli 2023 kl. 13.31.13 UTC+2 skrev Anthony William Sloman:
On Sunday, July 2, 2023 at 3:31:03 AM UTC+10, Commander Kinsey wrote:
On Fri, 30 Jun 2023 11:02:08 +0100, Klaus Vestergaard Kragelund <klau...@hotmail.com> wrote:
On 30-06-2023 06:24, Commander Kinsey wrote:

Since microchips are such a small part of a car, how can the chip
shortage be affecting them? Won\'t they just pay more for the chips and
get them before other uses? Tripling the chip price in a car is nothing
compared to the whole car price.

Well, you can\'t just pay more and get it, if other customers has put in
orders/forecast.

Even a single IC that costs nothing can stop an entire car from rolling
off the assembly line.

Nonsense. I make 1 million chips, you buy 500K of them to make cars. Fred buys 500K of them to make graphics cards.

Now I can only make 500K chips. One of you loses out. You pay me double, Fred loses out, simple. You can more easily pay me double, because the chips are a far smaller percentage of the cost of a car than a graphics card.
Bit it\'s also easier to redesign the car to use a different chip or several smaller chips - a graphics card is much more of a one-trick pony.

you don\'t just change to a different mcu in a car either
That\'s exactly what Tesla did.
I\'ve sure it wasn\'t \"just change\" unless it was some arm soc running the touch screen and UI

Not sure what you are trying to say. The had to do a redesign of the board, I\'m sure. I can\'t say how much work was needed on the software, but much of the hardware interface is virtualized in software these days, even MCUs..

The point is, they did it, and kept making cars, while other auto companies shut down for longer periods.

--

Rick C.

+ Get 1,000 miles of free Supercharging
+ Tesla referral code - https://ts.la/richard11209
 

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