4 ms·
Anybody who follows the industry knows semiconductors manufacturing is a boom and bust industry. This video covers it quite well: https://www.youtube.com/watch
by someperson 5y ago
Anybody who follows the industry knows semiconductors manufacturing is a boom and bust industry.
This video covers it quite well: https://www.youtube.com/watch?v=Z7QkIECEkVc https://www.youtube.com/watch?v=Z7QkIECEkVc
Automakers cancelled their orders during the early days of COVID-19 and lost their place in the queue (and now are crying foul).
Also many companies have double-booked orders from multiple suppliers making the shortage look worse.
There's a huge amount of semiconductor capacity coming online in the next few years, much of will be barely profitable once this current shortage dissipates.
- totalZero 5y agoDouble booking is a consequence of shortage. You can't separate it out. Longer lead times make it harder to predict future demand, and perception of scarcity leads to overbooking that exacerbates the negative consequences of underbooking.
- pyuser583 5y agoYou can forbid companies from canceling orders - which discourages it.