Silicon Chip Shortage Now Blamed On The Vaccine

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The vaccine comes in a silicon bottle/vial which has created a world wide shortage of silicon. Why not use another material instead as this is screwing the economy.

I was reading up about the shortages being experienced by companies like Home Depot and how business has changed over the last year. The biggest problem and it is a global problem is the computer chip shortage. If you just take a moment and think virtually every appliance or motor vehicle has one as everything is electronic needing a brain to drive it. Home Depot was struggling to acquire home appliances like fridges and freezers due to no computer chips. With more people spending time at home demand for things like freezers shot through the roof.

Originally the excuse for the shortages was down to Covid and factories shutting down ,but that is only part of it. It turns out the vaccines being made world wide have their vials/tubes made out of silicon which happens to be the same silicon the semi conductors or chips are made out of. How screwed up is that?


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The shortage is expected to last well into 2023 or even 2024.

How bad is the situation you might ask as this isn't a shortage, but a major catastrophe that ripples across virtually every manufacturing industry. Samsung is the second largest manufacturer of chips and also the second largest user of chips and they don't have enough for themselves.

Apple spends in the region of $60 Billion per year followed by Samsung on roughly $40 million making the other companies in the queue less significant. Not small companies when we are talking about the likes of Ford, Volkswagen and Toyota. The entire motor industry spends roughly $40 Billion per year on chips and as they are separate entities they are small fish at the back of the queue. Toyota only spends $4 billion so this is understandable when others are 10 times or 15 x bigger.

Ford and Nissan has already reduced manufacturing, cutting back on shifts and stalling production. General Motors is expected to be hit with a $2 Billion loss this year. This is fairly serious and when you think about it they can only blame themselves for relying on another company providing them with crucial components.

Out of the whole group Samsung seem to be the smartest as they manufacture and sell the chips plus provide for their own electronic goods. Intel is the biggest in the world manufacturing $80 billion dollars worth per year. The United States manufactures roughly 12% of the world market with Asia way out in front on 75%. What I find ludicrous is Intel is an American Company yet the Government allowed a crucial manufacturing business to set up overseas. This is something you protect at all costs as the cost to the economy is going to be gigantic. I know other countries step in and offer subsidies or tax cuts to keep certain businesses at home.

To set up a plant it takes a good two years and it is about time countries get their priorities in order. Certain items that are crucial to the industry should always be made at home and not left in the hands of others. Who knows when this shortage will be over as the demand has outstripped supply with hefty backlogs. Price increases are guaranteed as there have been two already this year

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This is fairly serious and when you think about it they can only blame themselves for relying on another company providing them with crucial components.

I honestly felt this was the smarter thing to do, especially in a system that has a very efficient production chain as it lowers production cost and allows the company focus and specialize. Alas, there are always loopholes to detect once a problem arises.

We can easily predict big price jumps as a result in the coming year, may be a good time to make sure our old gadgets are in sound working order

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Maybe you are right but don't think it will be a problem in Africa as our stuff is never the latest and greatest as we are a dumping ground especially for technology. 2 years is the problem as there is no quick fix due to the back log in orders.

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Well I am not sure I buy into that idea. It could have an impact but I think there was something much bigger at hand.

A lot of demand was pulled forward during the lockdowns. People couldnt spend on services so they spent on good. Couple that with massive increases in IT spending which went through the roof and we saw probably 3 years worth of demand pulled forward.

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Imagine if the plan is to screw the global economy and every bit helps. The coronahoax is going well, there are many ways to screw economies...

What a crazy idea...


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Very clever more like it as this has derailed everything. What is next?

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A global financial crisis, triggered by multiple failures all at the same time - bringing down BTC with this latest China energy story being one of many examples - plenty more in line and coming soon!

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