Frying Pan Into the Fire -- Chip Shortage

• General Motors (GM -2.5%) plans to restart production sooner than expected at a crossover plant in Tennessee.
• GM's Spring Hill Assembly plant will return to regular production on April 19 instead of April 26 after the semiconductor shortage situation showed some improvement. The automaker produces the GMC Acadia and Cadillac XT5 and XT6 crossovers. In addition, GM will also not halt production next week of the Chevrolet Blazer at a plant in Mexico as indicated last week.
• Other plant shutdowns in Michigan, Kansas and Canada tied to the global chip shortage remain unchanged.
• The global chip shortage hit GM right as the automaker was catching a lot of attention for its goal to be "all-electric" by 2035.

• Yesterday, TSMC (NYSE:TSM) reported that its Fab14 P7 in the Southern Taiwan Science Center experienced a power outage that lasted for several hours, which was caused by construction workers accidentally severing and underground power line. TSMC said it was evaluating the impact of the outage.
• Research firm TrendForce estimates that the facility accounts for 4% of the foundry's total 12-inch wafer capacity and around 2% of the global 12-in. wafer capacity.
• TrendForce thinks it will take TSMC from two days to a week to get the equipment systems recalibrated and ready for normal operation.
• The firm estimates that disposal of the overly damaged wafers will cause a negative financial impact of $10-25M, which is only about 0.1% of TSMC's annual revenue.
• The Fab14 P7 facilities include 45/40nm and and 16/12nm production lines. The former is one of the nodes used to manufacture automotive chips, which means auto chip makers like NXP Semiconductors and Renesas (OTCPK:RNECF) could bear the brunt of the outage impact.
• TSMC was also using the facility to help Renasas cover some production lost after a recent fab fire, which could put the auto chip giant even furthur behind schedule.
• Recent news: Earlier this week, Intel, working toward its goal of being a global foundry player, said it was speaking with auto chipmakers about potentially handling some of the production.
• Related: Early this morning, TSMC reported upside Q4 results, raised its full-year capex estimate, and warned that while auto chips could start seeing easing pressure next quarter, the chip shortage could stretch into 2022.

• Renesas Electronics (OTCPK:RNECF) restarted minimal output on its 300mm chip line on Saturday at the fire-damaged facility located northeast of Tokyo.
• Half of the Naka plant's capacity should be back online by the end of this month, and the full production ramp will take an additional 70 days.
• Renesas first announced the fire four weeks ago. The fire was caused by an electrical overload and damaged the fab's clean room and 23 machines.
• The company is one of the world's largest suppliers of microcontroller chips used in the automotive industry, representing about one-third of the global market that's still stuck in a chip shortage.
• Last week, Nikkei Asian Review sources said Renesas hoped to return to normal deliveries by the end of June.

• Toyota says the chip supply outlook is "a little cloudier" for June and July after being "fine" in April and May. The comment came during an exec appearance on Bloomberg TV.

mysticsvt said:

Curious how that will affect me making injectors for Ford. Time off would be great..lol

Click to expand...

• Internal warnings at Volkswagen (OTCPK:VWAGY) suggest the automaker faces a bigger production hit in the second quarter than the first from the global chip shortage.
• "We are being told from the suppliers and within the Volkswagen Group that we need to face considerable challenges," VW exec Wayne Griffiths tells the Financial Times.
• Volkswagen has halted production at several locations across Europe.
• The recent power outage at a TSMC (NYSE:TSM) facility and damaging winter storm in Texas added additional strain to global auto chip production.
• The ongoing chip shortage has seen Ford (NYSE:F) close a dozen more facilities in North America and Europe, while Jaguar Land Rover (NYSE:TTM) is shutting two of its U.K. factories. Renault (OTC:RNSDF) suspended production guidance due to the issue and Daimler (OTCPKDAIF) is reducing employee hours to adjust to the lower rate of production. In early February, General Motors (NYSE:GM) warned the global automotive chip shortage could cut 2021 earnings by up to $2B. Some analysts are wondering if the figure could be adjusted higher alongside the Q1 earnings report.
• The chip situation adds pressure on automakers to pick the right models to focus on just as many brands are turning electric.
• Notable chip makers for the auto industry include NXP Semiconductors (NASDAQ:NXPI), Texas Instruments (NASDAQ:TXN), ON Semiconductor (NASDAQ:ON), STMicroelectronics (NYSE:STM) and TSMC.
• What to watch: Intel in talks to serve as foundry for auto chip companies amid shortage and auto suppliers are being sized up ahead of earnings with the chip shortage in the mix.

• Ford (F) says it will halt production at its German plants in Cologne and Saarlouis for several weeks due to a lack of semiconductors.
• The two plants make about 2K vehicles a day combined during a normal production run.
• "We will make up for the lost production as best as we can... We are working to improve the situation as soon as possible," updates the automaker in a statement.
• A long list of automakers have seen production disrupted, including Jaguar Land Rover, Volvo and Mitsubishi Motors, General Motors and BMW.
• AlixPartners estimates that the chip shortage could cost automakers $61B in lost sales in 2021.
• Read through all of Seeking Alpha's extensive coverage of the global chip shortage.

Weather Man said:

Waiting for chips.

Thousands of new Ford pickups parked at Kentucky Speedway, can’t be sold (journal-news.com)

View attachment 1702868

Click to expand...

• The global semiconductor market will return to normal supply levels by the second quarter of 2022, according to new Gartner research.
• Gartner notes that the shortage has moved from auto chips to consumer electronics and the entirety of the semiconductor supply chain, including substrates, wire bonding, passives, materials, and testing.
• Gartner expects device shortages to be pushed out until Q2 2022 but substrate capacity constraints could continue until Q4.
• The research firm has four tips of advice for semiconductor-reliant industries: extend supply chain visibility, guarantee supplies with preinvestments or a companion model, track leading indicators, and diversify the supplier base.
• “Since the current chip shortage is a dynamic situation, it is essential to understand how it changes on a continuous basis. Tracking leading indicators, such as capital investments, inventory index and semiconductor industry revenue growth projections as an early indicator of inventory situations, can help organizations stay updated on the issue and see how the overall industry is growing,” says Gaurav Gupta, research vice president at Gartner.
• Related chipmaking stocks include foundry giant TSMC (TSM -3.5%) and auto chip companies NXP Semiconductor (NXPI -4.3%), ON Semiconductor (ON -2.1%), and STMicroelectronics (STM -3.9%).
• The Biden administration is planing a summit with chipmakers and reliant companies to address the shortage and potential U.S. investments.

Weather Man said:

Waiting for chips.

Thousands of new Ford pickups parked at Kentucky Speedway, can’t be sold (journal-news.com)

View attachment 1702868

Click to expand...

gimmie11s said:

Absurd.


Sent from my iPhone using the svtperformance.com mobile app

Click to expand...

Weather Man said:

Waiting for chips.

Thousands of new Ford pickups parked at Kentucky Speedway, can’t be sold (journal-news.com)

View attachment 1702868

Click to expand...