Frying Pan Into the Fire -- Chip Shortage

Weather Man

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China auto sales drop 20% in September as global chip shortage persists



  • Automobile sales in China declined 19.6% Y/Y in September to 2.07M vehicles, falling for a fifth consecutive month as a prolonged global shortage of semiconductors disrupts production.
  • Sales of passenger cars in September fell 17% Y/Y to 1.58M vehicles, the China Passenger Car Association said. China's car sales in Q3 2021 declined 13% Y/Y.
  • Deliveries of new-energy vehicles, which include EVs and plug-in hybrids, soared 202% from a year earlier to 334,000 units in September.
  • “We see strong sales momentum for new energy vehicles going forward,” PCA Secretary General Cui Dongshu said. “Exports to the EU have been spurring overseas shipments.”
  • Sales in China for Toyota Motor (NYSE:TM), Japan's largest automaker, fell 35.9% Y/Y to 115,000 units last month, after decreasing 11.9% in August.
  • Honda Motor (NYSE:HMC) saw new car sales drop 28.1% to 121,448 units in China in September, while its electric vehicle business was stagnant.
  • Sales for Nissan Motor (OTCPK:NSANY) also plummeted 26.2% to 104,443 units in September.
  • Volkswagen (OTCPK:VWAGY) sold 10,126 ID. series EVs in China last month.
  • EV maker Nio's (NYSE:NIO) September deliveries rose 81% M/M to 10,628 vehicles. XPeng (NYSE:XPEV) delivered 10,412 EV deliveries in September, which were up 44% over August's shipments.
  • However, Li Auto (NASDAQ:LI) September shipments fell 24.8% M/M to 7,094 Li ONEs. Tesla (NASDAQ:TSLA) sold 56,006 made-in-China vehicles in September.
 

DSG2003Mach1

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Meanwhile Tesla hums along since they didn't cancel their chip orders at the beginning of the pandemic. : D
what I was reading the other day was that they were able to switch over to a different chip with better availability and worked like mad to re-write all the firmware to support the new chip
 

tones_RS3

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When do you guys suppose this chip shortage bullshit will end?
Mid 2022?
 

Fat Boss

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Another year or two. The automakers continue to sell far fewer cars than they have demand for. All of those lost sales add to the regular demand next year and the year after.
 

DSG2003Mach1

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When do you guys suppose this chip shortage bullshit will end?
Mid 2022?

I keep seeing that they think it will ease up - not end- by late next year. They don't think some of the demand for certain items using chips is sustainable but I wouldn't hold my breath
 

Weather Man

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  • Apple (NASDAQ:AAPL) shares dipped in after-hours trading Tuesday following a report that the company is slashing its iPhone 13 production targets for this year due to ongoing component shortages in the semiconductor market.
  • According to Bloomberg, "people with knowledge of the matter" say that Apple will cut its iPhone 13 targets by as many as 10 million devices due issues affecting suppliers Broadcom (NASDAQ:AVGO) and Texas Instruments (NASDAQ:TXN). The two companies provide communications chips and technology for the iPhone, but like many in the chip sector this year, they have has had their own supply chains disrupted due to shortfalls of key semiconductor-making parts.
 

tones_RS3

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I keep seeing that they think it will ease up - not end- by late next year. They don't think some of the demand for certain items using chips is sustainable but I wouldn't hold my breath
Would be a great time for an entrepreneur to start up a chip business right here in the good 'ole U.S. of A.
Minus the ****ing taxes the traitorous politicians put on people in America starting up new businesses. Makes zero ****ing sense.
 

DSG2003Mach1

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Would be a great time for an entrepreneur to start up a chip business right here in the good 'ole U.S. of A.
Minus the ****ing taxes the traitorous politicians put on people in America starting up new businesses. Makes zero ****ing sense.
It takes so long to build a plant if demand drops by then you might be screwed. We have to play by all these epa,osha and other rules so many others don’t and everyone wants it cheap
 

Weather Man

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Hyundai is working on developing its own semiconductor chips in-house



  • Hyundai Motor (OTCPK:HYMTF +1.6%) wants to develop its own semiconductor chips following a global shortage that continues to plaque automakers.
  • Hyundai had to temporarily shut down some of its factories due to the chip shortage but COO Jose Munoz says that the problems have reached their peak following the "toughest months" of August and September.
  • Companies such as Intel (INTC +2.9%) have been investing in expanding semiconductor chip capacity at factories. "But also in our case, we want to be able to develop our own chips within the group, so we are a little bit less dependent in a potential situation like this," Munoz said.
  • Munoz also added that Hyundai plans to make up for the lost production by delivering more vehicles next year. Only a few automakers besides Hyundai, such as Toyota (TM -0.4%), Tesla (TSLA +0.7%), were able to increase global sales in spite of the chip shortage.
  • Munoz, whose company is non-union, also believes that the US government should give all EV vehicle producers a proposed $4,500 tax credits, not just those in unions.
 

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