Jump to content
Sign in to follow this  
Mockduck

(No politics) Electronic Component Shortage Investigation underway in US

Recommended Posts

Don't care about your politics, leave it the heck out of this thread. I found this interesting today and probably quite significant in terms of both Intellivision's and other companies' recent issues related to getting their new consoles out the door. Assuming this leads to a relatively fast improvement of the pipeline, it makes it far more likely that the Amico will be able to get made and shipped for its October release date:

 

https://www.cnet.com/news/ps5-xbox-component-shortage-to-be-investigated-as-part-of-new-biden-executive-order/

 

 

  • Like 4

Share this post


Link to post
Share on other sites

Good article on how Covid chip/component production issues have effected every automaker except Toyota (they have a 4 month stockpile, for once having an inventory surplus of something is a good thing):

 

Here is a telling quote: "“I can’t imagine really anyone getting spared,” Hearsch said. He said the situation could turn into a “knife fight” between companies, industries and even countries for supplies of the chips, which are used in everyday consumer electronics."

 

https://www.cnbc.com/2021/02/11/how-covid-led-to-a-60-billion-global-chip-shortage-for-automakers.html

 

Pretty rough time for anyone needing electronic components :(

 

 

  • Like 3

Share this post


Link to post
Share on other sites

I don't see how this is going to improve the pipeline in the short-term, the investigation will probably find what everyone else knew all along,  shutdowns and economic disruption made it harder to source parts, having a ripple effect throughout supply chains.

  • Like 1

Share this post


Link to post
Share on other sites
4 minutes ago, GrudgeQ said:

Good article on how Covid chip/component production issues have effected every automaker except Toyota (they have a 4 month stockpile, for once having an inventory surplus of something is a good thing):

 

Here is a telling quote: "“I can’t imagine really anyone getting spared,” Hearsch said. He said the situation could turn into a “knife fight” between companies, industries and even countries for supplies of the chips, which are used in everyday consumer electronics."

 

https://www.cnbc.com/2021/02/11/how-covid-led-to-a-60-billion-global-chip-shortage-for-automakers.html

 

Pretty rough time for anyone needing electronic components :(

 

 

The Just In Time inventory philosophy we've had for the past 30-40 years plus the outsource as much as you can philosophy maybe work well in good times, when everything functions smoothly.   But times like this show just how vulnerable it can leave us.   Hopefully that isn't too political a statement for this thread?

  • Like 3

Share this post


Link to post
Share on other sites
2 minutes ago, zzip said:

I don't see how this is going to improve the pipeline in the short-term, the investigation will probably find what everyone else knew all along,  shutdowns and economic disruption made it harder to source parts, having a ripple effect throughout supply chains.

I don't think it will short term. I think the goal is to highlight (and hopefully do something about) the fact that America does precious little/no manufacturing of many critical components which effects everything from cell phones to fighter jets and big employers like auto. Like the article said this is one topic where both sides could come together.

  • Like 4

Share this post


Link to post
Share on other sites
Just now, zzip said:

The Just In Time inventory philosophy we've had for the past 30-40 years plus the outsource as much as you can philosophy maybe work well in good times, when everything functions smoothly.   But times like this show just how vulnerable it can leave us.   Hopefully that isn't too political a statement for this thread?

Just in Time is a huge cost benefit (lower overhead) to those who implement it but your 100% right it is very vulnerable to interruption. This could be any interruption including natural disasters, power cuts (see Texas earlier this month), nearly anything. Nothing political about it, it is clearly a strategy that relies on maintaining a stable production environment and the hidden cost of that is often times infrastructure & regulatory environments which are governmental and often get politicized but shouldn't be.

  • Like 4

Share this post


Link to post
Share on other sites

I cannot imagine this investigation will discover anything surprising.

China has had the lions share of global electronics manufacturing for decades. As soon as they had problems, now everyone downstream of them has problems as well.

I suspect the result of this investigation will be for diversification rather then reliance on a single source, and to encourage (hello subsidies!) electronics manufacturing and production in the US.

Which certainly will not be a bad thing, but also a little late to help out with the current shortages.

  • Like 6

Share this post


Link to post
Share on other sites

I don't think it will uncover anything surprising, but could put it in writing for the future. Having the government start looking, though, will at least get things organized I bet. 

Share this post


Link to post
Share on other sites

We had a meeting a few weeks ago with one of our big private investors who is a legit billionaire and who absolutely LOVES what we're doing.

 

He asked me and Nick what we would do with $100 million.  It was an interesting question we never received before.

 

I said... aside from more marketing and bigger/more licenses...

"I'd build a plant in Texas and try to manufacture and assemble as much of the machine as humanly possible."

 

He smiled and said...

 

"Right answer".


I'm not saying this is happening... it was just a hypothetical.  But reading the articles here reminded me of that story.

Sad to know that the original Intellivisions were made right here in California at one time.  And then the entire electronics industry left shortly after that.  Really sucks.   :(

 

 

  • Like 12

Share this post


Link to post
Share on other sites

My company just opened a new US manufacturing plant a year before COVID hit.   Seemed a little crazy at the time, but it's helped us avoid some of the supply disruptions

  • Like 3

Share this post


Link to post
Share on other sites

Where could this investigation lead?  I work for the airlines, they've continued to move cargo, but even if they do, they need people to load/unload.  Factories need people, ships, docks.. etc.  No matter what, when you shut down an economy, it effects all aspects of the whole system.  If the widget needs several layers to be brought to the customer, all layers need to function. 

 

The question doesn't lie in the shortages, the questions that need to be asked was if this was necessary to the level it was taken....and how could we not have been prepared for this.  

 

At least it looks like the light at the end of the tunnel is getting brighter.  

 

Edited by IMBerzerk
  • Like 2

Share this post


Link to post
Share on other sites
On 2/26/2021 at 4:56 PM, IMBerzerk said:

Where could this investigation lead?  I work for the airlines, they've continued to move cargo, but even if they do, they need people to load/unload.  Factories need people, ships, docks.. etc.  No matter what, when you shut down an economy, it effects all aspects of the whole system.  If the widget needs several layers to be brought to the customer, all layers need to function. 

 

The question doesn't lie in the shortages, the questions that need to be asked was if this was necessary to the level it was taken....and how could we not have been prepared for this.  

 

At least it looks like the light at the end of the tunnel is getting brighter.  

 

It's worth noting that this virus started in late 2019, months before any action was taken by the United States (among other countries). In fact, I first learned about the outbreak from that big Atari VCS thread, of all places, when Atari was explaining why they couldn't meet their current deadline.

 

...And yet nobody took any real action.

Share this post


Link to post
Share on other sites

This could be the equivalent of the local health department stopping by your restaurant; it could have the potential to get bad actors and people playing games in the current environment quickly in line. So, more political pressure than anything else, but it could stop some of the exploitation likely going on as companies vie for limited production time. 

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...