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The customers screwed up the forecast. That's a huge part of the problem. They assumed the pandemic would kill demand and cancelled orders, but it didn't, and t
by mkr-hn 5y ago
The customers screwed up the forecast. That's a huge part of the problem. They assumed the pandemic would kill demand and cancelled orders, but it didn't, and the cancelled capacity was already sold to someone else.
- tyingq 5y agoAs I understand it, there's also the case that you can't just move from one fab to another of the same process size at will. There's different setup/software/procedures, so the capacity isn't instantly interchangeable. There may even be fabs with excess capacity, but no "ready" customers.
- zdragnar 5y agoI know of dealerships that had sales drop by 95% in the initial months of the pandemic. What they got wrong was the duration of the drop and that sales would bounce back, rather than simply return to normal after a bit. Now some dealerships are selling new cars above MSRP, just because supply is so low.
- slavik81 5y agoThere was also a factory fire. https://news.ycombinator.com/item?id=26558359 https://news.ycombinator.com/item?id=26558359
- Factorium 5y agoIt didn't because the US Government printed trillions of dollars: https://tradingeconomics.com/united-states/money-supply-m0 https://tradingeconomics.com/united-states/money-supply-m0 There are a lot of people who have benefitted enormously from the economy/stock market crashing, then being resuscitated by this unprecedented money injection: https://www.yahoo.com/news/fed-vice-chair-traded-stocks-152738020.html https://www.yahoo.com/news/fed-vice-chair-traded-stocks-1527... https://fortune.com/2021/07/08/house-speaker-nancy-pelosi-husband-paul-big-tech-stocks/ https://fortune.com/2021/07/08/house-speaker-nancy-pelosi-hu... Politicians and bureaucrats should have planned with industry ahead of time and notified them that the COVID impact would be cushioned by huge financial stimulus. But why do that if you as an individual bureaucrat or politician can make millions by trading on that insider knowledge? Its unfair to blame suppliers when there has been Government conspiracy against them.