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SVTPerformance's Chain of Restaurants
Road Side Pub
Frying Pan Into the Fire -- Chip Shortage
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<blockquote data-quote="Weather Man" data-source="post: 16598357" data-attributes="member: 137766"><p><a href="https://seekingalpha.com/news/3676818-auto-chip-shortage-worsens-after-blackouts-and-fire-sending-semi-suppliers-higher" target="_blank">Auto chip shortage worsens after blackouts and fire, sending semi suppliers higher</a></p><ul> <li data-xf-list-type="ul">Earlier today, Nio <a href="https://seekingalpha.com/news/3676661-nio-halts-production-lowers-vehicle-delivery-outlook" target="_blank">announced</a> a five-day production suspension at the JAC-NIO manufacturing plant in Hefei due to the global semiconductor shortage. No dropped its Q1 vehicle delivery forecast to 19.5M from the prior 20-20.5M range.</li> <li data-xf-list-type="ul">The semiconductor shortage was largely due to spiking pandemic-related demand for notebooks, smartphones, game consoles and other consumer electronics. The auto industry faced plunging demand early in the pandemic. Automakers largely cut chip orders and lost their already low priority at semiconductor foundries.</li> <li data-xf-list-type="ul">The auto industry then rebounded faster than expected, leaving the automakers scrambling for foundry capacity that doesn't exist.</li> <li data-xf-list-type="ul">Adding capacity take significant time and money even for foundry giant TSMC (<a href="https://seekingalpha.com/symbol/TSM" target="_blank">TSM</a> +2.6%). The shortage was also recently worsened by a weather-related blackout in Austin, Texas, and a fire at a fab of auto chip giant Renesas (<a href="https://seekingalpha.com/symbol/RNECF" target="_blank">OTCPK:RNECF</a>,<a href="https://seekingalpha.com/symbol/RNECY" target="_blank">OTCPK:RNECY</a>).</li> <li data-xf-list-type="ul">Last month, Austin authorities asked the local foundry of Samsung (<a href="https://seekingalpha.com/symbol/SSNNF" target="_blank">OTC:SSNNF</a>,<a href="https://seekingalpha.com/symbol/SSNLF" target="_blank">OTC:SSNLF</a>) and fabs of chip suppliers NXP Semiconductors (<a href="https://seekingalpha.com/symbol/NXPI" target="_blank">NXPI</a> +1.1%) and Infineon (<a href="https://seekingalpha.com/symbol/IFNNY" target="_blank">OTCQX:IFNNY</a>) to pause operations due to the <a href="https://seekingalpha.com/news/3662893-samsung-pauses-chip-fabs-in-texas-amid-power-shortage-sending-semiconductor-stocks-lower?utm_medium=referral&utm_source=from.flipboard.com" target="_blank">local blackouts.</a></li> <li data-xf-list-type="ul">Last week, Infineon said the operations pause will have a negative impact in the high double-digit million euro range on <a href="https://seekingalpha.com/news/3674528-infineon-expects-q3-revenue-hit-from-texas-production-pause" target="_blank">Q3 revenue.</a></li> <li data-xf-list-type="ul">The same day, Renesas first revealed a fire in one building of a facility that produces components for automotive, industrial, and IoT components. The company said the fire damage will take its 12-inch production offline for up to a month.</li> <li data-xf-list-type="ul">Research firm TrendForce estimates that it will take at least three months for Renesas to return to pre-fire production levels. And, due to the semiconductor shortage, there isn't external foundry capacity available to<a href="https://seekingalpha.com/news/3675426-renesas-fire-related-production-pause-could-last-three-months-says-trendforce" target="_blank"> cover the lost production.</a></li> <li data-xf-list-type="ul">The continuing shortages do offer pricing power to the auto chip suppliers for the stock they do have, which is pushing shares of market players STMicroelectronics (<a href="https://seekingalpha.com/symbol/STM" target="_blank">STM</a> +2.2%), Texas Instruments (<a href="https://seekingalpha.com/symbol/TXN" target="_blank">TXN</a> +1.9%), and Microchip (<a href="https://seekingalpha.com/symbol/MCHP" target="_blank">MCHP</a> +1.3%) higher.</li> <li data-xf-list-type="ul">Deeper dive: Auto chip shortage driving $61B in lost sales faces <a href="https://seekingalpha.com/news/3659294-auto-chip-shortage-driving-61b-in-lost-sales-faces-complicated-recovery" target="_blank">complicated recovery</a></li> </ul></blockquote><p></p>
[QUOTE="Weather Man, post: 16598357, member: 137766"] [URL='https://seekingalpha.com/news/3676818-auto-chip-shortage-worsens-after-blackouts-and-fire-sending-semi-suppliers-higher']Auto chip shortage worsens after blackouts and fire, sending semi suppliers higher[/URL] [LIST] [*]Earlier today, Nio [URL='https://seekingalpha.com/news/3676661-nio-halts-production-lowers-vehicle-delivery-outlook']announced[/URL] a five-day production suspension at the JAC-NIO manufacturing plant in Hefei due to the global semiconductor shortage. No dropped its Q1 vehicle delivery forecast to 19.5M from the prior 20-20.5M range. [*]The semiconductor shortage was largely due to spiking pandemic-related demand for notebooks, smartphones, game consoles and other consumer electronics. The auto industry faced plunging demand early in the pandemic. Automakers largely cut chip orders and lost their already low priority at semiconductor foundries. [*]The auto industry then rebounded faster than expected, leaving the automakers scrambling for foundry capacity that doesn't exist. [*]Adding capacity take significant time and money even for foundry giant TSMC ([URL='https://seekingalpha.com/symbol/TSM']TSM[/URL] +2.6%). The shortage was also recently worsened by a weather-related blackout in Austin, Texas, and a fire at a fab of auto chip giant Renesas ([URL='https://seekingalpha.com/symbol/RNECF']OTCPK:RNECF[/URL],[URL='https://seekingalpha.com/symbol/RNECY']OTCPK:RNECY[/URL]). [*]Last month, Austin authorities asked the local foundry of Samsung ([URL='https://seekingalpha.com/symbol/SSNNF']OTC:SSNNF[/URL],[URL='https://seekingalpha.com/symbol/SSNLF']OTC:SSNLF[/URL]) and fabs of chip suppliers NXP Semiconductors ([URL='https://seekingalpha.com/symbol/NXPI']NXPI[/URL] +1.1%) and Infineon ([URL='https://seekingalpha.com/symbol/IFNNY']OTCQX:IFNNY[/URL]) to pause operations due to the [URL='https://seekingalpha.com/news/3662893-samsung-pauses-chip-fabs-in-texas-amid-power-shortage-sending-semiconductor-stocks-lower?utm_medium=referral&utm_source=from.flipboard.com']local blackouts.[/URL] [*]Last week, Infineon said the operations pause will have a negative impact in the high double-digit million euro range on [URL='https://seekingalpha.com/news/3674528-infineon-expects-q3-revenue-hit-from-texas-production-pause']Q3 revenue.[/URL] [*]The same day, Renesas first revealed a fire in one building of a facility that produces components for automotive, industrial, and IoT components. The company said the fire damage will take its 12-inch production offline for up to a month. [*]Research firm TrendForce estimates that it will take at least three months for Renesas to return to pre-fire production levels. And, due to the semiconductor shortage, there isn't external foundry capacity available to[URL='https://seekingalpha.com/news/3675426-renesas-fire-related-production-pause-could-last-three-months-says-trendforce'] cover the lost production.[/URL] [*]The continuing shortages do offer pricing power to the auto chip suppliers for the stock they do have, which is pushing shares of market players STMicroelectronics ([URL='https://seekingalpha.com/symbol/STM']STM[/URL] +2.2%), Texas Instruments ([URL='https://seekingalpha.com/symbol/TXN']TXN[/URL] +1.9%), and Microchip ([URL='https://seekingalpha.com/symbol/MCHP']MCHP[/URL] +1.3%) higher. [*]Deeper dive: Auto chip shortage driving $61B in lost sales faces [URL='https://seekingalpha.com/news/3659294-auto-chip-shortage-driving-61b-in-lost-sales-faces-complicated-recovery']complicated recovery[/URL] [/LIST] [/QUOTE]
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SVTPerformance's Chain of Restaurants
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Frying Pan Into the Fire -- Chip Shortage
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