Frying Pan Into the Fire -- Chip Shortage

[Weather Man]

Toyota Motor to produce 800K vehicles in October​

TM -2.24%Sep. 22, 2022 5:42 AM ET

• Toyota Motor (NYSE:TM) announced plans to produce about 800K vehicles worldwide in October - Reuters.
• This is about 100,000 short of company's average monthly production plan, due to semiconductor shortages.
• Last month, the company said it aimed to produce 900K vehicles from September through November.
• However, the company now expects to produce about 850,000 vehicles per month on average from October to December weighed by chips shortages.
• The company will suspend production for up to 12 days for 10 lines at seven domestic factories in October.
• Earlier this month, the company stated that it will suspend production on three lines at its Motomachi plant in central Japan for some days in September.
• The company is still aiming for 9.7M global vehicle production target for current financial year through March 2023.

 

[Weather Man]

Honda Motor to cut production by 40% at two Japanese plants in early October​

HMC -2.42%Sep. 22, 2022 6:12 AM ET

• Honda Motor (NYSE:HMC) said on Thursday it would reduce car output by up to 40% at two Japanese plants in early October due to ongoing supply chain and logistical issues - Reuters.
• Two lines at company's Suzuka plant in western Japan will cut production by about 40% in early October, while its assembly plant in Saitama prefecture, north of Tokyo, will cut production plans by about 30% for the period.
• The company also said that it would cut vehicle production at Saitama by about 40% and at Suzuka by about 20% for the rest of September.
• Delays in receiving parts and logistics on COVID-19 outbreaks and semiconductor shortages will affect a variety of vehicles, including the Vezel sports utility vehicle, Stepwgn minivan and Civic compact car.
• Also last month, the company revealed plans to cut down production plans by up to 40% in Japan early in September due to persistent supply chain and logistical issues.

 

[Weather Man]

The number of chips needed for EV is insane.

Qualcomm slips even as CEO Amon says automotive design-win pipeline now at $30B​

Sep. 22, 2022 4:06 PM ETQUALCOMM Incorporated (QCOM)METABy: Chris Ciaccia, SA News Editor20 Comments

Justin Sullivan

• Qualcomm (NASDAQ:QCOM) shares slipped on Thursday even as the company's Chief Executive, Cristiano Amon, said its design-win pipeline has climbed to $30B, up from the $19B the semiconductor giant had earlier reported.
• Amon made the announcement at Qualcomm's (QCOM) automotive investor day, noting that its Snapdragon digital chassis and other products in the space are helping the company win market share.
• In addition, Nakul Duggal, Qualcomm's (QCOM) company's automotive senior vice president and general manager, said Qualcomm (QCOM) is seeing a total addressable market of about $100B in the automotive space by 2030.
• Duggal also said that starting in 2023, Qualcomm (QCOM) would power Mercedes-Benz cars' cockpits.

 

[Weather Man]

This is why people expecting the used car market to implode, short of a bad recession, are doomed to keep waiting. Year 3 of the OEM's falling way short of demand.

Toyota Motor expects to miss its annual production target of 9.7M due to chip shortage​

TM +0.20%Oct. 21, 2022 5:37 AM ET

• After cutting the October's average monthly production to 750K vehicles from 800K vehicles (originally cut down from 900K) due to semiconductor shortages, Toyota Motor (NYSE:TM) expects to miss its annual production target of 9.7M vehicles for the financial year through March 2023.
• Revised target will be disclosed soon.
• The automaker will suspend 11 production lines at eight domestic factories next month, affecting the output of a wide variety of vehicles including the Corolla, RAV4 and Yaris.
• The automaker slashed its global production target for last financial year three times, from 9.3M in May 2021 to 8.5M this February.
• It ended up producing about 8.6M vehicles in the last financial year, which ended on March 31.

 

[Fat Boss]

Lam Research gave their quarterly report and outlook on Wed. The industry is now in agreement that the outlook for 2023 is approx a 20% decline in semiconductor capital equipment sales. The backlog isn't filled, but it's filling.

 

[Weather Man]

So, if all the existing and new carmakers in the world are ramping up production of EV cars, and those cars need twice as many chips for auto's than ICE, how many years does it take the chip supply chain to catch up?

Stellantis to pause production at Italian plant amid parts shortage - Reuters​

STLA -0.98%Jan. 20, 2023 7:27 AM ET

Stellantis (NYSE:STLA) is due to pause production at a southeastern Italian plant due to persistent supply chain problems, according to Reuters.

The outlet reported that work stoppages are due to commence in the coming week as the automaker runs short on parts necessary for production. Union officials told Reuters that chip shortages in particular are holding up production. The length of the pause is unclear at this time.

The Atessa plant, set to pause production next week, is the largest van manufacturing plant in Europe.

 

[Fat Boss]

It's ironic that there's a chip shortage for certain segments, but the industry as a whole is in a down year. My boss was asked to rank his direct reports- a clear sign a RIF is likely.

 

[Weather Man]

It's ironic that there's a chip shortage for certain segments, but the industry as a whole is in a down year. My boss was asked to rank his direct reports- a clear sign a RIF is likely.

Agree.

 

[Weather Man]

General Motors inks chip supply agreement with GlobalFoundries​

GM +3.08%Feb. 09, 2023 11:49 AM ET3 Comments

General Motors Co. (NYSE:GM) and GlobalFoundries (GFS) jointly announced a long-term chip supply agreement on Thursday.

Under the terms, GlobalFoundries (GFS) will manufacture chips for the automaker at an upstate New York plant. The exclusive agreement is expected to allow chips to be produced in higher volumes and stave off shortages such as those seen by the auto manufacturer in recent years.

"We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, commented. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.”