4 ms·
If all the manufacturers did what Toyota did that would have exacerbated the chip shortage.
by riskable 5y ago
If all the manufacturers did what Toyota did that would have exacerbated the chip shortage.
- kaesar14 5y agoNot if the other car companies realized that the lead time being so long meant that cancelling their orders was a horrible idea.
- oivey 5y agoThe stockpiled chips would have been made before the shortage, so that doesn’t follow.
- fgonzag 5y agoThat's backwards. It would had prevented the shortage. The shortage is happening because manufacturers cancelled their chip orders from their suppliers because of reduced sales forecasts due to COVID. When the manufacturers cancelled their orders from their suppliers, the supplies cancelled the orders from the foundries, which cancelled their slots and gave them to consumer electronics which had increased demand. When sales of new cars rose, manufacturers called their suppliers for more parts, which called the foundries to increase production only to find out their previous slots had been sold.
- dv_dt 5y agoWell also the climate induced power outages in Texas knocked out three (4?) foundries in the Austin area from suppliers that tended to supply embedded customers. Foundries really really hate to be interrupted and getting them back up seems to be taking longer than anticipated.
- spfzero 5y agoI think I know what you're getting at: If all of the manufacturers suddenly requested private inventories to be set up, the chip manufacturer would be dedicating all of its production to filling up warehouses rather than shipping. It seems like Toyota was farsighted in this.