Worldwide chip shortage is upon us

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tortugaranger

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Worldwide chip shortage is upon us
« on: 26 Jul 2021, 07:23 pm »
You may have heard about a worldwide chip shortage mostly in the context of shortages impacting car/truck manufacturing. Most of our preamp products are built around the STM32 ARM Cortex family of microcontrollers...a very popular technology/brand. Today I checked with our suppliers in both the US and China. Top line US suppliers like Mouser and DigiKey are sold out....of practically everything STM32. China suppliers have very limited supply but prices have tripled or quadrupled for those few they have in stock. The same situation exists with every manufacturer of modern microcontroller chips.

This shortage is reverberating through every industry that uses modern microcontrollers, with demand going up as embedded microcontrollers are finding their way into almost everything. Meanwhile new chip plants take $10+ billion and 2-3 years to build and bring on line.  :duh:

Fortunately we laid in a decent supply of the chips we use several months ago and are in reasonably good shape for the rest of this year.  :thumb:

Living in interesting times indeed.   :?

DannyBadorine

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Re: Worldwide chip shortage is upon us
« Reply #1 on: 27 Jul 2021, 03:40 am »
It's fascinating to see this happen and how many industries are effected by it.  On a similar and completely different note, I was in a fly fishing shop today and the owner told me that he is having a lot of trouble getting supplies there too because manufacturing has been crippled by Covid.  It's a strange world, but I hope that it will create more innovation and possibilities as we find ways around these problems.

Letitroll98

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Re: Worldwide chip shortage is upon us
« Reply #2 on: 27 Jul 2021, 11:15 am »
My son owns a bicycle shop and some parts are nearly impossible to get.  It's across all industries.  On the bright side it's teaching a lot of Americans something about the complexities of supply chains, most people have no clue how things magically appear on their store shelves.

caryking

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Re: Worldwide chip shortage is upon us
« Reply #3 on: 20 Aug 2021, 10:16 am »
Great point about supply chains!  At one point, these chips were manufactured in the US.  Globalization is part of the problem as well.  COVID is still a driver in this; however, the US never protects its own base.  Globalist want to make an extra dollar and moves the supply chain to the Asian world.  In this case, the chips are mostly being made in Taiwan.  Now, pay attention to world news!  China is going to unify Taiwan into the mainland.  When this happens, all bets are off...


tortugaranger

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Re: Worldwide chip shortage is upon us
« Reply #4 on: 20 Aug 2021, 01:47 pm »
Supply shortages transcend simple explanations like globalization or the general decline of US manufacturing. The microcontroller chips we use at Tortuga Audio are made by STMicroelectronics which is based out of Geneva, Switzerland. They have factories all over the world. Most of their factories are running at partial capacity despite the high demand and shortages - because they've lost so many key people to Covid and are having great difficulty finding qualified replacements. Sure, the US would be better off with more home-grown manufacturing capacity but we'd be struggling with the same issues here.

At first I had assumed the chip shortages were limited to the most sophisticated types of chips - microcontrollers. I'm now seeing clear evidence that even workhorse integrated circuit chips like certain op amps and EEPROM memory chips that have been around for decades have become scarce.

Totally unrelated to chips, I had my pool resurfaced this past spring several weeks after the big freeze in Texas. This required a pallet of cement bags plus a few bags of "pebbles" which are crushed/sized stone blend of your choice of colors. Basically, cement and crushed rock. The contractor was delayed several weeks because he couldn't get the crushed rock.....CRUSHED ROCK!!!  Thanks to the big freeze, the factory in Texas which had been producing those pebbles for years was back on its heels having been shut down and damaged from the power outage and frozen pipes. Weeks/months later it was still struggling to get production back up as the spring pool season was just getting started. Point being, whether it's extreme global weather or extreme pandemics, supply chains are highly vulnerable to disruption regardless of location.