CC Wei, CEO of Taiwan Semiconductor Manufacturing Company (TSMC), warned Tuesday that an endemic shortage of chips costing 50 cents to $ 10 is slowing down the $ 600 billion semiconductor industry tiers.
Debby Wu for Bloomberg News:
ASML Holding NV of the Netherlands is struggling to get $ 10 chips for its extreme ultraviolet lithography systems, or EUVs, he said. TSMC has dozens of machines, which are critical for packing more power onto smaller silicon chips. Elsewhere, a 50-cent radio chip hindered the production of $ 50,000 cars, Wei said, without elaborating.
Shortages are manifesting as automakers add more features to cars and increase silicon used by 15% every year, while smartphones now require two to three times the number of management chips. ‘power compared to five years ago, Wei said.
“The era of an efficient and globalized procurement system is over,” he said, noting that production costs are also rising due to the increasing number of countries rushing to build factories at home. “Costs are rising rapidly, including inflation.”
MacDailyNews takes: The repercussions of the stupid shutting down of entire economies due to COVID in a panic trampling rights, instead of working thoughtfully to protect those with comorbidities who were most at risk, will be felt by all of us for many years.
The real virus is panic. – MacDailyNews, March 9, 2020
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