No Minister

No Chips, no motion

A couple of weeks ago in The Veteran’s post on Taiwan, I included a graph showing the degree to which the world relies on Taiwan for silicon chips.

I also made the point that the world would likely not even be able to feed itself if there was a major, lengthy disruption to the production of silicon chips, given the degree to which tractors and other farm equipment depend on them to work nowadays.

Here’s the latest evidence, from The Truth About Cars:

Have you heard the one about the dead cars? No, not the ones we find in junkyards, but the ones that haven’t had life yet, thanks to the chip shortage.

These so-called “dead” cars are vehicles that have rolled off the assembly line, otherwise ready for sale, sitting in fields or on lots near the factories that produced them, just waiting for chips.

… that number is set to grow, as GM announced that plants in Indiana, Michigan, and Mexico that produce the Chevrolet Silverado and GMC Sierra will halt next week, thanks to, you guessed it, the chip shortage.

GM had so far avoided chip-related shutdowns by skipping some features, and by … building some trucks and adding the chips in later

Written by Tom Hunter

July 24, 2021 at 11:55 am

8 Responses

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  1. The Pie chart is pretty conclusive what is at stake over Taiwan, I had no idea, thanx Tom.

    Gravedodger

    July 24, 2021 at 2:54 pm

  2. The other transportation method threatened would be bicycles. Nearly all the reasonable and upwards quality bike components are supposed to be made in one industrial park in Taiwan.
    So if china invades Taiwan, there woun’t be any bikes for the harbour cycle bridge as the trendies won’t ride last year’s bike.

    Chris Morris

    July 24, 2021 at 3:49 pm

  3. Gee wizzzz! Ain’t glowballisation juss wunnerful?

    adolffinkensen

    July 24, 2021 at 4:04 pm

  4. Fascinating info thanks Tom. It really is in the ole US of A’s interests to have a free Taiwan.

    We’re watching Occupied on Netflix. Fascinating, and the US real politic doesn’t come out looking good. I won’t say more to avoid spoilers, but it is a counterpoint to Taiwan.

    Paranormal

    July 24, 2021 at 10:12 pm

    • Watched it twice, and the US is portrayed as it really is, as a transactional ally. There was nothing in it for the US, so they saw no need to aid Norway. Remember, in order to remove Berg from the US Embassy they poisoned his food. All this in Season 1, before the arrival of Trump.

      There is no counterpoint with Taiwan as the USA needs Taiwan more than it needs a (fictional) Norway. However, if the USA can move more of the chip production to Mexico, their need for Taiwan will fade faster than you can say Jose!

      Little Dorrit

      July 25, 2021 at 6:35 pm

    • LD hopefully this helps your understanding, from vocabulary.com: A counterpoint is something that contrasts, and to counterpoint is to provide a contrast.

      And thank you for spoilers for those that have yet to watch.

      Paranormal

      July 25, 2021 at 10:30 pm

  5. I work in the industrial automation business and we are waiting up to three months for hardware. Can anyone explain why this is happening all of a sudden ?

    Porky Roebuck

    July 25, 2021 at 4:45 pm

    • Yes Porky you may work there, I Robot was modelled on you, but as a Socialist / Marxist you probaly dont understand Economics 101.

      Excess demand leads to price rises and shortages because supply is inelastic, ie it cant respond as quickly as demand.

      Demand has increased because it has been switched from international travel to local or national products.

      Got it or do you need a bit more help. I dont think Das Kapital covers it adequately

      rossco

      July 25, 2021 at 7:12 pm


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