4 ms·
It's still the same effect. Supply doesn't have to overshoot. Computer chips aren't just stamped out instantly; a complex chip with many hundreds of process ste
by gorkish 3y ago
It's still the same effect. Supply doesn't have to overshoot. Computer chips aren't just stamped out instantly; a complex chip with many hundreds of process steps can take months to manufacture. The latency of design/revision cycle means manufacturers are always doing everything they can not to overproduce.
- panarky 3y agoThe chip shortage lasted longer than you'd expect because everyone from end users to intermediaries has been hoarding them. It's like the covid toilet paper shortage, even if you keep producing a thing at the same rate, stockpiling creates shortages which stimulate even more stockpiling. When that eventually reverses, expect a temporary glut.
- xw4002 3y ago> a complex chip with many hundreds of process steps can take months to manufacture. "Three months, 700 steps" for the GlobalFoundries Fab in Malta, N.Y. https://www.seattletimes.com/business/technology/three-months-700-steps-why-it-takes-so-long-to-produce-a-computer-chip/ https://www.seattletimes.com/business/technology/three-month...