The Real Reason Tesla Overcame The Chip Shortage Crisis!

There is a global computer chip shortage which is causing issues for supply lines across the world.. lets dive into Tesla's chip suppliers, how Tesla is battling the global computer chip shortage, and why there is a global chip shortage around the world.
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[@AkkerKid]

That's my dog and roombas at 5:54! It's an old pic that I posted to reddit in 2012.

[@michaelairheart6921]

That clean room brings back memories. I was a member of UA Local 100 and ran piping and installed the machinery to make semiconductors and integrated circuits at Texas Instruments.

[@ventusprime]

the smell of ozone , and the ESD suit for me.

[@dcchris-311]

I currently work at the Richardson TI fab.

[@Geroskop]

Hey! FAB28 TEL FSE2 here!)))

[@shaynebiggs3908]

UA 488 here brother

[@smorris5539]

The only chips in my 67" Chevelle are the Doritos I dropped on the floor.

[@HisLoveArmy]

Nice dad ;)

[@mattfransen4131]

(Gets passed by a Prius on the right)

[@timngot4180]

😄😄😄

[@charliepearce8767]

@@mattfransen4131 With the same milage ? Naww.

[@alestbest]

People like you said back then that the car will never replace the horse. Most people have an old car because they can't afford a new, modern one.

[@TheLunacyofOurTimes]

Ford and GM were buying low margin old generation chips. When they canceled their orders the foundries went to make something better and now don't care to go back.

[@kstaxman2]

There was also the fire at the only plant that specialized in chips for cars. That was the final straw as that plant made many chips that no other plants were making. These legacy chips were their nitch business. Once they were gone the problem for automakers went off the charts.

[@miguelstella2]

OEMs don't buy chips, they buy modules and components from big tier 1 suppliers like Bosh and Siemens and they are the ones buying chips. OEMs never assembled a chip on anything...

[@majorpaindiaz]

@@miguelstella2 That is how I remember it, I worked at Cummins.

[@unadultratedtrini]

@@miguelstella2 we all get that but in the end it's a cascade of 4 to 5 middle men compared to tesla stride to vertically integrate and minimize middlemen

[@Mrbfgray]

Many appliances like washing machines, refrigerators, microwaves--have NOT improved with electronics, they've gotten worse.

[@Danny-qt5vt]

In what regards? In terms of longivity? In terms cost effiency or energy preservation?

[@Qingeaton]

@@Danny-qt5vt In terms of "it's the circuit board that's bad" when it quits working after two years.

[@plumbum6558]

There was nothing wrong with mechanical thermostats for refrigerators timers stoves dryers and washers they were more dependable! Never needed a digital display!

[@shreysharma726]

well....."old is gold"

[@Mrbfgray]

@@Danny-qt5vt In terms of efficient usability, cost and reliability. Microwave ovens are the WORST, unless you search out a commercial one. Would you take 5 or 10 seconds hitting hitting several buttons to turn on a light? Yet that's what we have for those STUPID nukers. (i have a commercial dial type and it's vastly superior) ON with a timer to OFF, that's what you do with them, it's asinine to have anything more than a rotary dial. I had a brand new Hairer refer a few months ago, the touch screen controls NEVER worked right but then the POS never got cold anyway, just didn't work right out of the box after I spend 3 hrs getting it unpacked, up stairs and into my kitchen. (should have plugged in with extension cord out in the front yard first to see if the pile of F_ck would even turn on besides the light)

[@DefekCs]

I have never opposed an idea expressed in video/KZbin ever so much to write a comment on it, but here I am... Fundamental problem with this video? There are A LOT of valid points where none of them look outside the given statement (try to prove the oposite). In start, background: I am dealing with chip shortage solutions in a company were all its products are "electronics"; I am very familiar with reality of this situation. Few of our products got stuck in supply chain shortages, but some never even stuttered... not even for a day there was a "chip shortage" for few products ever! Reminder - all of the products are strictly electronics. What gives? Only few arguments as an example... "Chip shortage" is more precisely defined as a "sub-100nm digital high-speed chip shortage" (to be clear, that 100nm number I just pulled out of my a** as even I don't know the precise number myself, but the fact stays). Not all chips are made equal. Not all of them require "cutting edge" tech. Even some ICs we might consider as "very sophisticated" does not require companies like TSMC to make. It has nothing to do with "vertical integration" or "in-house code development". First, there is a difference between general purpose ICs & ASICs. If You design Your own ASIC (essentially a custom chip), You can chose two things - size & technology. If You have a freedom to make Your chip huge AF & lower the frequency of operation at the cost of more operational nodes inside Your ASIC, You can make a "potato" chip that is far superior than the most powerful CPU in the world! Real life example? BitCoin ASICs vs Intel CPUs. Intel (at the time) was built on 14nm tech whilst BitCoin ASICs were made in 130nm tech! Hell, even current top-of-the-line BitCoin ASICs are made in "true" 16nm tech while Intel is made in more like 10nm or smth. Guess who mines faster...? Most in-house designed ASICs WILL NOT use cutting edge technology as it is more expensive and makes no sense. This makes ASIC market in non-cutting-edge tech pretty immune to "chip shortage" as they can be made outside of very economic-sensitive factories. TSMC is faaaaar from the only place where chips are made. Guess twice what "Tesla" was doing and other car manufacturers never did...? "Boch" is main tech supplier for if not all then most car manufacturer in the world in means of electronics. As they supply so many makes & models, it makes no sense to develop an ASIC for every customer - it is much more cost-effective to go with generic, over-the-top ICs, that can do everything for everyone... if they can be supplied, that is. Second reason is plain and simple - money. If You have money, You can buy anything. Even Your place in queue ahead of everybody else. Even chips that are out of stock. F**k it - You can by a workforce that can design You out of any shitty situation You get Yourself into! We did it ourselves (bought chips that were so called "out of stock") for one our product... Okay, price went up significantly.... for A CHIP, but in retrospect for whole product? Not that much. It was not even that much to increase the price of our product in the end. But for manufacturers, where we are talking about hundreds of chips? Brute-force approach is just not an option!! There are many more arguments from real life that contradicts arguments in this video, but I am already playing the bets on the fact someone, anyone will ever read this! :D So, final word - all this "chip shortage" is actually affecting very narrow market space of silicon products that (unfortunately) covers a wide variety of products due to much, much more significant factors that are very much outside the scope of this video. Though I am ready to tell more if there is someone that got to this line... :D :D :D :D

[@liamfarrugia9225]

I repair electric and hydraulic tools for the energy and utility sector at work and we had a 4 month back log of circuit boards on order because of the shortage. Really feeling the strain in all avenues.

[@jameshoffman552]

The new $15B Samsung fab is on the Texas Axis of Tesla, just north of Gigafactory Texas, and Steel Dynamics.

[@goldnutter412]

Samsung. Quantum 2.0 is the new buzzword. There it is. Samsung knows things they can't tell you for another.. year maybe two.

[@larryc1616]

TSMC is spending 100B in the next 3 years on R&D and new fabs. they are building a new 20B fab right next to Intel's new 10B fab. lol

[@stevebigfoot8864]

@@larryc1616 If that is true (and I have no reason to doubt you), then Las Vegas is in trouble. NXT already has a fab in Phoenix, and Lake Mead is practically dry.

[@larryc1616]

@@stevebigfoot8864 yes, it's true. tsmc was building 1 fab, but now planning 5-6 fabs in arizona. samsumg is building fabs in austin, tx too. So, i asked in another video, "where does intel and tsmc get all the water for their fabs in hot, dry, and never-rain Arizona?" no one has ever answered that question to me. i'm from cali so i have no idea about water supply in AZ.

[@dproulx222]

@@larryc1616 I've had the same question..... It would have been more intelligent to build Fabs in the Pacific North West if water is an issue......

[@themcpharaoh552]

Thank you for explaining why my 7 tesla stocks went up $94 (school project)

[@NinjaKiller1022]

What stocks?

[@matissklavins9491]

What school project

[@danielpickett8560]

As a project we all chose 3 stocks to put money into. I still have all 3 stocks and they have created a very sizable source of wealth. I'm stable for life now. Stick with it! It really pays to invest when you're young.

[@themcpharaoh552]

@@danielpickett8560 here we had 4 stocks to chose and 10k to spend (not actual stocks just a hypothetical)

[@knightryder4021]

@@themcpharaoh552 you get taught all of these in school?

[@shinigamilee5915]

I work in the industry and your numbers are accurate. Often the Ph.D's I talk to online are invariably unaware of the costs and purity of silicon.

[@goldnutter412]

Nice seeing comments like this. Much respect. Lee... ha i love "coincidences"

[@shinigamilee5915]

@@goldnutter412 worked for both SanDisk and WD for 10 years as an electrical engineer and my degree is in physics.

[@Hotspur37]

But on the online Ph.D.s have all done their own research, they know everything about everything.

[@goldnutter412]

@@Hotspur37 in the interspaces, man #NOTman #lawsuit #ohfmliDIDNTputaDisCLAIMerr

[@goldnutter412]

How did they do things ? TL;DR - clever. Very clever. Data = POWER

[@almcdincanterbury4762]

They need to open a semi conductor factory in Scotland, it never stops raining there

[@dickritchie2596]

I’m more than happy to go back to analog cars and appliances.

[@AjitMD]

Timing light anybody?

[@Tron-Jockey]

Points and condensers? Nah. Why stop with earlier ICE vehicles when electric cars predate them. The original electric cars of the late 1800's and early 1900's were true analog electrical appliances (no digital circuitry or control).

[@fourthmusketeermani]

Nope nobody is going back

[@swongsonvanee]

I’m okay with beating my clothes against rocks down by the river….

[@hillbillyintheasia6122]

tell china take it then they control the world

[@loeysf]

This vid is actually one of the most cogent and accurate explanations of the global automobile semiconductor shortage I’ve seen on KZbin. Congratulations. I’m glad I subscribed to this channel when I ran across it a couple of months ago. Great content!

[@k7iq]

Agreed ! Except that most of the production automation videos they are showing here are the contract manufacturing of the populating of the circuit boards of the ICs/Chips and not the semiconductor manufacturing itself. That's OK though since both steps are required and watching semiconductors being made can be kind of boring comparatively because watching silicon ingots grow is kind of like watching grass grow 😀 . BTW, from my understanding with our semiconductor vendors, part of the chip shortage issue has to do not all from the silicon chips themselves but also the packaging for the ICs.

[@GodKing804]

You need to try outside of yt

[@Leshic2]

@@k7iq "part of the chip shortage issue has to do packaging" Is that right? I've never heard of bottlenecks on the packaging side. Not to say it couldn't happen, but that's interesting. (worked in the industry for ~20yrs)

[@Leshic2]

loeysf, the accuracy is a little off.. They mixing up terms. 2:05 is an example, it's correct to say "Fab" here.. not "Foundry".. "Fabs" are the factories. "Foundries" are a specific type of Fab that doesn't design their own chips. They take orders to make chips for companies that design them. Imagine a factory that makes engines. GM, Ford, Toyota, BMW, Renault, and engines for tractor trailers, busses, dump trucks, lawn mowers, and many others, send their designs to the factory, and the factory makes everybody's engine, and ships them out to each client. They don't just make for clients who are in competition with each other (GM, Ford, Toyota, BMW, Renault), but other industries all together, that need engines.

[@carlthor91]

@@Leshic2 There is a good amount of chips, fabbed in Texas/Caliifornia and such, not to match Samsung and others. But I think the big packaging ops are on Taiwan. Whole lot of air freight happened. Plus as pointed out, it takes a while/conditions to grow the silicon.

[@bobholmes6735]

Super clear explanation! Just one opps, it's the sheet metal stamping line, not the Gigapress that makes the vibrations you are talking about. Important destination because most people get confused between high-pressure casting, and stamping! Keep up the great content.

[@camielkotte]

"stuck sideways in a canal, takes a long time to change course". Suddenly I was struck with humor while watching a rather serious and extensive investigation about chips. Thx.

[@captainvlog]

I remember I briefly worked for a chip manufacture that was working on a new photolithography stage. They had issues with the air conditioner noise resulting in vibrations messing up their accuracy.

[@givemeabreak8784]

Look at the mountains of electronics thrown away ! Maybe we should make them reusable. This is a open minder how we treat electronics.

[@TheArklyte]

Maybe we should just charge domestic producers and importers with full recycling fee for all this garbage? Plastic, electronics, rubber. We know specific amounts sold, imported or produced with precision to percent of a gram in some cases because all these companies report sales and taxes. So strike them with recycling fee for existing recycling rate, don't let them ship the garbage away. This rate would be very high at current prices, so it'll hike product prices too. Which would lead to 1)companies themselves actually investing in cheaper and more effective recycling tech not for PR, but for money they care about. So it'll be actual recycling instead of blueprint or prototype for social networks showing; 2)the rise in prices due to local recycling would make locally produced goods more competitive as it'll lower the percentage advantage the cheap slave chinese labor provides. So these companies would have more of an incentive to move away from it; 3)more competitive market, fee for recycling your own products and higher focus on local products would lead to higher incentive to produce lasting products that would serve customer more instead of current "die on the day of warranty expiration" trash so that the producer can evade the recycling fee on them en masse and to be more competitive in new market environment. They would also spin it as their own choice to focus on consumers for PR. So, what's your opinion? Yes/no? Of course that scenario is an idealised "physical model" of an idea. Such bill won't be passed due to lobbies and to have lasting global effects, it should be applied in all countries of "golden billion" ie not just USA, but Canada, UK, EU, Australia, New Zealand, Japan, South Korea, Taiwan and so on... Oh, yeah, and Elon would be one of the hardline opponents and lobbyist against it;)

[@Lucianrider]

What wasn't mentioned is that the more traditional car manufacturers depend on older style chips that use more wasteful large nanometer architecture. When they cancelled their orders the FAB manufacturers moved onto making smaller nanometer chips which can't be used by the car manufacturers without redesigning a lot of their electronics. They also would need to test the newer tech chips to make sure that they are reliable and safe enough to be used as these are considered to be mission critical.

[@M69392]

Thanks you just saved me 14 minutes.

[@nathanthomas8184]

Those are 10mm chips now they use 5mm & 1mm

[@smoothbraindetainer]

@@nathanthomas8184 nanometer not millimeter

[@anythingoriginal]

seems a lot of computer makers are short on chips too. PC sales soared throughout covid, why did they stop making or distributing those chips?

[@smoothbraindetainer]

@@anythingoriginal they didn't stop. Demand is just at an all time high.

[@asdfasdfasdfasdeff]

A 15 minute (could have been 1 minute) video with random b-roll footage to keep you mesmerized. Welcome to 2021 hypnosis to keep you glued to your screen and put money in someone else's pocket.

[@kstaxman2]

Great content could have used the new fabs coming here in the US. Intel, Samsung, and TSMC are all building new fab manufacturing facilities here in the US. It will go a long way to insuring chips in the future. Way past time folks understand that chip supplies aren't produced overnight. Nor are new plants quick to build.

[@JK360noscope]

Apparently TSMC is hush hush shipping an entire fab here

[@K1ckingNScr3aming]

There is no good thing that the US can't screw up. This is built into the short-term profits free market point of view.

[@FlyingPigNJ]

They are building new fabs as a part of their scheduled expansion. They have very little to do with the chip shortage;) It's simple. Do semi-decent forecasts and hold up your end of bargain. German, Japanese and American car manufacturers tried to bully their suppliers into taking their loses for them as usual. Except they all screwed themselves this time. Tesla got lucky not because they weren't trying to bully their suppliers, they were just in can't lose situation. If they cut the chip order, they don't sell enough cars, they are gone. If they get the chips, and car market collapses, they are gone. So the only way for Tesla is survive was to keep the chip orders and hope for the best. So lucky for them...and for me...with my 3rd tesla :)

[@FlyingPigNJ]

@@JK360noscope There is nothing hush hush about it. TSMC did not want to run a fab here. Uncle Sam bullied them into building one. In order to build one for 20 billions, they pretty much need to be pre-built, shipped and assembled. Imagine how much it would cost if they had to design one here.

[@OpenMachines.]

Congrats at 100k subs (Thanks for the like)

[@nelsonmacy1010]

Great insights. Much appreciated

[@MB-xz1gh]

I grew up in the 70s. 8 tracks and carbs. You changed the points in your car to keep it running good..no cellphones. computers?? Tvs had tubes.. I MISS IT

[@MrCPPG]

I don't miss carbs at all. Had a Dodge Dart with a slant six that would vapor lock on moutain passes. My forst brand new car had single point FI and I loved it. 8 tracks were cool though.

[@jason.arthur.taylor]

@@MrCPPG what car has single point EFI?

[@augustolori]

Clear explanation! That is what I needed, thank you!

[@craigruchman7007]

Great job of tying all the bits and pieces together

[@charlesayeni]

Elon might as well hire you to the PR team

[@iamjakepaul944]

If Tesla had a PR team. 🤷‍♂️

[@hugeassets8678]

@@iamjakepaul944 Elon Musk is the PR team.

[@TheArklyte]

@@gamerfortynine What KGB agents? Honest question;)

[@jamesbizs]

@@darpro0457 no one asked what a PR team is. Jesus.

[@milesobrien2694]

Computer "chips" are made with Silicon (Sill i CON) not Silicone. Breast implants use silicone.

[@bradlesc1000]

My bong is also made of silicone, it is 3 separable pieces and really easy to clean :)

[@stevehoran6132]

Whats the diffrence. The utilty of the element is vast. From inplants to computer chips

[@milesobrien2694]

@@stevehoran6132 Silicon (Si) is an element. Silicone is a petroleum product.

[@stevehoran6132]

@@milesobrien2694 huh fr, I thought they where the same thing xD cool how Si works in chips huh

[@milesobrien2694]

@@stevehoran6132 Well I made the original comment because he said "silicone" when he should have said "silicon". But silicone is based on silicon: "The most common silicone compound, poly-dimethylsiloxane, can illustrate the central characteristics of the class. The starting material is metallic silicon, which is obtained from silica sand." So you're nearly right, LOL.

[@GaryBleck]

My roof replacement was delayed by the chip shortage. 🤣 The solar powered blinds are on back order. I told them I can live without them and install them myself later.

[@ehombane]

Nice. My answer to the title, before even looking at the video was that Tesla overcame the shortage because there is no shortage. All there is good or bad planning. You plan in time, make your stocks, there is no shortage. Obviously accidents happens, and some echo well around. But some are plain bullshit. My desired graphic card doubled in price due to car chip shortage. WTF, than why other graphic cards less performant does not doubled in price? You know what: I can live with a cheap graphic card too. And suddenly there was no more shortage. Now, after watching the video, my opinion confirms. When I got my new computer a year ago, the order for it at the chip factory was planned long before, so if there was a shortage of that model, was bad planning, of those who decided the number. But my bet was that the retailer just increased the price, blaming the chip shortage in auto industry, since regular folks have no access to info like that in this video.

[@terrystephens1102]

Thanks for sharing this excellent explanation of the chip supply issue.👌👌👌👌

[@thorlong2983]

5:00 Chip generations are almost seasonal and that makes it almost taboo to stock new chips long term as you would have many generations of chips by the time production picks up. There are levels to hardware retention and EOL practices. It is rare for OEMs to hold older items as it can cause production problems, Tesla has had this issue several times as a newer car manufacture.

[@unadultratedtrini]

Your assuming short EOL. Most of the chips the rest of the car industry uses was designed 5 to 10 years ago. They go for stable chips with high availability and has gone through growing pains before implementation. A great comparison is why the US military still uses windows 98 in ships until recently.

[@trainmanrisko]

To add, it falls into the lean manufacturing principals, that these companies including Tesla, follow to order only what you need to reduce waste/cost

[@miraichan5292]

@@unadultratedtrini If those company still have money to throw around like tesla did stock them is a good idea. But as you can see at start of virus situation everything look bad and extra weight need to be cut.

[@unadultratedtrini]

@@miraichan5292 Your also missing the point that they decreased orders going into the pandemic because they miscalculated vehicle purchases. A lot of people that would otherwise go on vacation took that money and did house upgrades and new vehicle purchases which for some reason no one expected. ....

[@davidofhawaii6509]

Excellent article. Being old, 88, and old fashioned, I don't jump on every new technology that comes along. However, it seems many items have planned obsolescence. Our current washer and dryer are too smart for their own good. When something goes wrong, they just shut down and leave an error message. An ordinary person can't do anything with them and it costs several hundred dollars to get a repair person. I can do most of the work on my '94 van including rebuilding the engine but on the 2020 Honda Accord which has a lot of great features including automatic braking and lane warning but other than peering under the hood once in a while, I do not dare touch any thing.

[@guppy277]

2:50 ...!🤭 Cant be more emphatic than this ..!! 8:35 ..!🤭 You rock with your examples ..!!

[@williamdeoradesilva9444]

Very good explanation. Thanks 🌟

[@aliezhasa9490]

Thank you for the informative news.

[@100_percent_bs8]

Congrats on 100k subs!

[@mars353]

Very concise and informative. Thanks!

[@kathyfann]

I am fortunate I had most of what I needed through this crazy time just needed a few things like a new IPhone when mine had a hardware issue and they chose not to fix it.

[@GD15555]

I heard it is getting so bad that even frito-lay is stepping to help.

[@freebisco3643]

underrated comment

[@Acidassassin420]

This should be the top comment lol

[@derrick8206]

Ha!

[@romanjackson80]

Hahaha

[@wellsilver3972]

Underrated???

[@crfsikness]

I worked in an IBM fab in New York that I'm pretty sure is still not back to full operation as I believe they are upgrading things inside before they start up the wafer production again. Last time I drove by there was about 10 cars and a few trucks in the lot that is usually full with over 2000 cars

[@sohamapte4717]

100k!!!! congrats man

[@biboKralle]

GM and such produce "just in time". They don't have capacity to stockpile stuff. That's the whole core of modern automaking!

[@fyremoon]

Tesla also has the advantage in that they can custom build their boards using accessible components because their competitors are using the ones that are in short supply. Given that Taiwan's semiconductor industry needs water, there doesn't seem to be any water tankers docking and giving them water from other countries so they can carry on production, they just see it as a local problem when it is a global problem that needs to be fixed with global thinking.

[@genesisretail2180]

Great job 👏 enjoyed and learned from this video

[@KevinNguyen-zn4vv]

I work in the industry and you're right on the DOT. The tech we're using now is actually 3-5 years old.

[@goldnutter412]

hahaha another great comment... this blew my mind a bit more as most things do lately kzbin.info/www/bejne/d2bdY6WNmdOtldE DOT any reference to polkadot ? lol kzbin.info/www/bejne/anS3m2Opq6aGf8k lol Nostradamus what a noob. More people need to read "the god protocols" by Nick Szabo. kzbin.info/www/bejne/bpeTfH2ZabGdabs this made me almost choke, then go and yell thanks, then go on a 30hr binge until keyboard face, followed by another yr of rabbit holing which led me to today. Cardano integration ? check.. now when do Ada and Albert get married ?

[@jason.arthur.taylor]

you work in which industry? cars? do you work at a fab? a roomba factory?

[@Geo-vg3xu]

So long story short Tesla didn’t cancel their chip orders in 2020. And just made the rest work.

[@KingLarbear]

Right, because their demand is so high that they knew they would need every chip that they needed

[@KingLarbear]

Plus these companies raked in record profit because of supply shorts and higher demand, so they created artificial demand

[@KingLarbear]

Remember, "inflation"

[@OperationXX1]

Semiconductor engineer here … there are some good info in this video but also a lot of incorrect info. The chip shortage has nothing to do with droughts in Taiwan or fires in Japan. The only reason for the shortage is a combination of unexpected growth in demand and lack of sufficient excess supply to meet it; and the long lead time needed to increase supply capacity. Also, it’s simply ludicrous to suggest that Tesla or any car maker could ever make their own leading edge fabs that are even remotely competitive. To even attempt to make competitive fabs, you’ll need lots and lots of chip volume and all of the auto industry chip volume put together isn’t enough to fund a competitive leading edge foundry. There’s a reason why there’s only 3 companies that can make leading edge chips in the world and only one of them has the required volume (i.e. 70% market share) to manage the R&D for the absolute cutting-edge node … TSMC

[@odysseus5872]

Thank you. I was looking for this response. He never answered his own question in the video as to what was the actual cause of the shortage.

[@bobbbobb4663]

Good luck convincing the cult. It’s obvious what Musk is doing...substitute non AEC parts on the BOM to meet production.

[@hillbillyintheasia6122]

tell china take it then they control the world

[@dannyslea]

Tesla fanboys: I am sure Tesla can just make their own chips and be the best at it. Anyone who's worked in Semiconductors: LMAO

[@NathanyelGrey]

yoo congrats on 100k

[@gregsexton2935]

Why I like my 20 year old washing machine and dryer. No chips and I can still get parts for them. Also like my old 1992 Chevy Silverado I can put a carburetor on it whenever the fuel injection system fails or can't find parts for it. New isn't necessary better. If you buy a new car right now there is no guarantee that you could find a part for it if something anywhere where to fail as hard as things are to find on the shelves anymore

[@Christopher_B_Mc_Collins]

Intel's just going to find some way to put that grant on the bottom line. There is always a loophole. We need to hold companies accountable if they take grants.

[@4biFarm]

Or we could stop voting for governments (on the left AND the right) that spend trillions of peoples hard earned dollars building roads to nowhere, hiring for useless positions and scratching the backs of their friends in industry (see California's proposed high speed railway for details).

[@kstaxman2]

Wast in government spending isn't limited to corporate grants. The deficit is out of control. The vast sums spent on giveaways is far higher than corporate grants.

[@Madmoody21]

@@4biFarm Until electoral votes are required to follow the votes of the state they represent our votes in long term plans and any leverage is worthless. Then until every vote has a registered fingerprint verified by a data base and a signature that can be reviewed by the public completely at any time. The way each voter went we have a decision protect privacy for each voter or transparency witch would make the system resistant to tampering.

[@Madmoody21]

@@kstaxman2 The federal reserve banking fiat system, large banks teamed up with corporations, a fake republic, weak selfish leadership, a citizen base that votes mostly by party that never looks at track record of who they choose to empower. The money goes somewhere. You really need to define vast giveaways. Is negative interest rates for banks that frauded 10 years worth of the words total G.D.P. just 12 years ago with bailouts a vast giveaway? I see the problems. It is far more natural, fair, and economically logical to distribute funds given out to individual registered citizens when the idiots decide it is needed than it is to give it to the fake entities that caused the problem to begin with.

[@larryc1616]

Intel lost their dominance over the decades by sacrificing long-term gain for short-term gain in stock buy backs/investors now down to 11% of chip market. TSMC instead sacrificed short-term gain for long term gain by investing in R&D, engineers and fabs now 60% of chip market. Intel's new CEO is changing strategy investing 10B in a new fab, while TSMC is investing 100B in new fabs with a 20B fab being built right next to Intel's new 10B fab. not sure if intel is serious or going for the "short-term" gains again.

[@sniperpro55]

I'm so glad to see yaboi growing up and being successful with something he's really interested in.

[@fourthmusketeermani]

Is the narrator yaboi !

[@_aweshit]

@@fourthmusketeermani not sure if you're asking or expressing .

[@fourthmusketeermani]

@@_aweshit I was asking, I should have used the question Mark (?) my bad ! 😅

[@_aweshit]

@@fourthmusketeermani we good bro, just so we all know. 😉

[@amadousn]

yes exactly what I thought

[@kk4649k]

2:00 someone went to the willy wonka factory and ate the blueberry

[@kcha51]

GREAT ! I just found your channel. Excellent writing and fact finding - you made my TOP 10 Thanks. ( GO RED SOX !! )

[@MikeyG003]

I still think Tesla are severely lagging behind because I ordered a Model Y in early June and its still nowhere to be found. Estimate now says Feb 2022, 7 months wait is insane...

[@manbroBE]

had this with my mercedes aswell actually, i have never had my car dilivered in less then 4 months here in belgium. My dad also had to wait 7 months on his model 3

[@ViperDent]

Back in the foreign Soviet countries and the USSR, you had to pay in full for a car you wouldn't see for over 7 years and hope that someone kept the paperwork in the meantime :D So long as you have a car to get you by, hopefully you can tough it out :) I hope that the world is still prioritising medical equipment and machines that really matter over cars or any other tech gadget.

[@michaeltuomenoksa3605]

Ordered my car in first week of feb. Got a message from the dealer that they still cant confirm.

[@MikeyG003]

@@ViperDent lol the good ol Soviet days

[@MikeyG003]

@@michaeltuomenoksa3605 damn! I mean some people ordered after me and they got theirs already so idk. We might as well try to delay the delivery then at this point to get the new battery updated models

[@MindCrime550]

There's a big difference when your whole fab has to be a cleanroom, and not just an automated car factory.

[@akuhei032]

Can't count how many times my eye rolled watching this video.

[@dollar0613]

Legitimately so well said and easy to understand the way you explained it

[@thefoss721]

Only had a issue with the PS5 but found a way around it after doing some research on drops but yeah it was extremely challenging, much less challenging than actually solving this situation… I would donate a few bucks for the cause though it’s gonna take a lot of work

[@Slebonson]

Good explanation of the chip shortage and Semiconductor manufacturing.

[@JD-tt4dg]

Also it’s apart of their business model. Tesla doesn’t have a dealership and stock waiting to be purchased. People pre purchase cars and they have an accounts deliverable to provide those vehicles. They know exactly what they need ahead of time to get the product in the consumers hands. It fits their business model strategically to NOT have to think about those things.

[@dfgggg89]

This is the type of situation that some enterprising person will be motivated into inventing a better way to make chips.

[@rvw3022]

Not really chip making requires extremely sterile environments more so than operating rooms. The average Joe doesn't have access to those facilities.

[@kamakiapeter7815]

yes agreed.

[@Joe44944]

Great video, thanks 👍!

[@3dgar7eandro]

5:52 LOL 😂👏👌

[@bricefleckenstein9666]

2:30 There is more impact on the chip makers from ASIC cryptocoin mining than GPU cryptocoin mining. But it's true that Crypto has been a major unexpected impact on chip making, given how many ASIC chips that Bitmain ALONE has been buying.

[@WolfHeathen]

GPU mining is gonna take over. ASIC is falling behind more and more for every year because "amateur" miners can't afford the rigs. I know people who've completely abandoned ASIC for GPU mining since GPUs not only draw less power but also increase hash rate for a much lower price.

[@heziah4429]

@@WolfHeathen Not only price for the hashrate is a factor. There are lots of uncertain things in the future for crypto in general and with a GPU rig you can be pretty sure of being able to switch to a new algorithm if what you are mining becomes unprofitable or worst comes to worst sell your hardware to recoupe some investment. With ASICs once the algorithim it is set for is gone all you are really left with is a very inefficient and noisy heater that nobody else is going to want either.

[@bricefleckenstein9666]

@@WolfHeathen Where real ASIC exists, GPU can't compete. Some will point to ETH - but ETH is a special case where RAM due to it's massive usage is the speed limit, NOT the processing - and current ETH ASIC machines are STILL ballpark 10 time as efficient as GPUs are. For Bitcoin (where ASIC has been king for many years), the current ASICs are THOUSANDS OF TIMES more efficient, GPUs can't even compete enough to get SHARES much less EARNINGS.

[@smoothbraindetainer]

@@WolfHeathen you don't know what you're talking about

[@rgeraldalexander4278]

My Chevrolet, which is under warranty, has been in the shop waiting for a computer for 25 days with no part or loaner in sight.

[@billboyd4051]

They will probably hit you with a storage fee.

[@rgeraldalexander4278]

@@billboyd4051 No, it's under warranty, so that's not an issue. Just getting old driving my gas guzzling old pick-up while I wait.

[@Dogbertforpresident]

Excellent video. Just subscribed!

[@homermoeller413]

Excellent analysis and current status! Thanks!!!

[@jahsnoke8043]

Musk needs to revolutionise the chip industry like how he did electric cars and rockets

[@mjohnsimon1337]

Honestly I'd be shocked if he isn't thinking of something

[@namelastname4077]

Chip production is harder than rocket science

[@PhilipAnderson]

Elon Musk’s practical approach would most likely be investing in a company like TSMC bringing production back into the USA like the current new Chip Fab being built in Arizona at this time. Great supply chain management keeps Tesla at the head of the delivery line where that is key to ongoing business.

[@jahsnoke8043]

@@mjohnsimon1337 Yes I think so too, his think tank at Tesla must be looking into that very seriously because when they ramp up production towards millions of cars per year they must ensure reliable chip supply, just like they've gone into battery production to ensure battery supply

[@jahsnoke8043]

@@PhilipAnderson Absolutely agree with you on that. Vertical integration has been the foundation that Tesla built its success on, and now they've gone into battery production even to mining raw material level. So it could be very possible they'll do similar investments into semiconductor production to ensure stable silicon supply as they ramp up production of cars in the millions

[@diskdrive123]

You don't just slap a different chip on a board and re-write code, you also have to re-design the board.

[@andrewsaint6581]

Nope, not if the board is re-written OTA nails it.

[@diskdrive123]

@@andrewsaint6581 What does that even mean? When you change the chips its physically the square peg in the round hole problem. So they aren't just reprogramming, they are also re-spinning the PCB's.

[@peterfireflylund]

Usually it’s just a minor change to account for a different pin out.

[@stewiex]

Amazing video! Thank you!

[@maximecanteloup]

I enjoyed that. Thank you

[@josefernandez4832]

I agree 100% that success is only obtained through hard and intense work, one that not only you make a good amount doing but one that you actually enjoy doing, and have the ability to do as much as your body, mind and lifestyle allows you to do. (Jay)

[@TheMrgoodmanners]

Very well said. People typically think there are shortcuts to everything

[@nicholasshereos1752]

I sell IT for a living this shortage has made my life hell

[@caenterprisellc6922]

Designing your own product is always smart.

[@iancormie9916]

One has to wonder is low performance chips could do the grunt work and some issues like autonomous driving requires top end chips.

[@edbalko3082]

YOU ARE ONE SUPER BRIGHT YOUNG MAN…if You ask me…Totally APPRECIATE what YOU have accomplished in Your LIFE…GOD BLESS and THANK YOU…for ALL the WORK YOU HAVE DONE…Sincerely Mrs.carmen balko

[@johnnybravo5962]

I’m happy you brought up Tesla coding around new firmware in order to pivot around the shortage, excellent company

[@starshipcaptain4753]

Great video thank you!

[@JerseyStyle7]

Very informative video thank you😊 im still waiting on my Y since july 🤔

[@NJcinemaHD]

So their bold strategy and confidence in their product (which was apparently greater than the big carmakers) really REALLY played out well. Nice to hear!

[@carholic-sz3qv]

Nonsense Stop talking shit mate, do you even realize how modern vehicles are today!? No manufacturers uses old style chips anymore, and for your records Tesla doesn’t just use high end chips but also old ones. Tesla has been selling cars with missing parts without telling customers, what a shame they try to mask the chip shortage.

[@shoking9825]

the world if out of chips while i found lots in my store there is lays, doritos,etc

[@redg0ate]

Great stuff thanx a mil

[@kastoriadocumentary4427]

Excellent video, thanks.

[@LTVoyager]

Elon was 100% right in resisting the government shutdown mandates and restarting early. He never should have shut down at all.

[@cahayanwar]

Come back here for your voice, mate :)

[@arthurwagar6224]

Thanks for good info. And understandable.

[@Eli-Lopez]

This is so good! Heard it the whole video. Very informative! 👍

[@bpt2333]

We would like you to study how Metamaterial Inc. will impact on the semi-conductor industry, as their NIL's can replace silicon at 1/8 the cost and time to produce while also negating and replacing the need for rare earth materials! Thank you for your time and research!

[@arnefines2356]

Who's 'we'?

[@unadultratedtrini]

You do know silicon is just sand. It's abundant. The rare earth metals could be looked into but the issue with chips right now isn't either of those. The issue currently is getting past phantom charges at quantum gate sizes.

[@bpt2333]

@@unadultratedtrini It may just be sand but by the time it is a finished wafer, it has a value of thousands of dollars because it required an abundance of time and energy to produce. Meet the next generation of clean tech, Meta Materials Inc: kzbin.info/www/bejne/o4Ldnqt4lpKSrrM META can replace silicon, Indium cobalt.... produced in minutes at a fraction of the cost while increasing performance. Did I mention that the finished product is an imprinted flexible film? MMAT is the first meta material company on the NASDAQ and they have an incredible list of applications and verticals.

[@bpt2333]

@@unadultratedtrini This is a good outline of some capabilities. Its worth a watch. kzbin.info/www/bejne/gWmkmH-Oo7N1ebc

[@xbing61]

So there wasn't really a chip shortage but cancelling orders and reordering them again takes a really long time.

[@davidnelson7719]

No... limited supply... and when you cancel your orders you lose access and new people gain access. Also, an actual shortage.

[@coach2208]

I believe Ford, GM, Chrysler, we're forced to cancel they're orders by this administration, so these EV cars can get a head start in putting more of them on the road, another politico thing. This administration probably gave billions to Tesla to get the ball rolling faster.

[@davidnelson7719]

@@coach2208 I believe you are a political troll in search of idiots who are willing to listen your your misinformation. Please find a deep hole and bury yourself in it.

[@coach2208]

@@davidnelson7719 if what I feel bothers u, it must be true, back off fool, and ur one of the idiot's that are brainwash to the point of insanity from the leftist Democrats.

[@davidnelson7719]

@@coach2208 You are a troll, you are not a real human being. Furthermore you have no idea what my political leaning is, but it is pretty clear what yours is. Find that hole ASAP.

[@timjackson3954]

Well that helps explain why I had to shut my business down. I was making one-off custom instruments and controls for industry, based on microcontrollers. Over the last six months my main supplier just went from ex-stock to one month lead time to six months to a year to "not in the foreseeable future". The manufacturers still send me advertising material for new products, even though there is no chance of actually getting any.

[@jason.arthur.taylor]

wow, so this chip shortage is real?

[@MRBUBBLEGUN123]

Great content, subbed! :)

[@legendparitosh]

Informative video. just fyi: they would not rewrite the operating system on the fly. That would take years of work. The probably got code for a smaller function say boot opening or something to work on a different chip architecture(if needed) and cross compiled existing code to run on that. Their ability to make decisions faster than giant companies probably has a lot to do with that.

[@wirlpoolgaming9710]

And you know this how?

[@legendparitosh]

@@wirlpoolgaming9710 years of working in software development

[@jimbeama]

Can you imagine any issues/bugs coming from constantly "re-writing the car's OS" and changing the PC boards to swap in and out different chips? How many versions of the software and hardware have been introduced in a single model year? How thorough can the testing be when the design is in constant flux. Tesla isn't the only one trying these tricks. However this is being talked about as something great. In my mind it will result in less reliable cars from an auto maker who is having issues with their software and hardware reliability already. YMMV - pun intended.

[@isaacclark9825]

It is not that changing chips is great. It's that not being able to change chips results in a nearly impossible situation. Also, changing the main processor does require changes, but those can largely be contained to just the stuff immediately surrounding the main processor as long as the communication protocols are standard. And of course much of the code is higher level stuff that can be recompiled. Not the best situation, but better than the alternative.

[@crazeguy26]

@@isaacclark9825 is not changing the chips is the issue. Toyota is know in the performance world to lock down the PCM is hard to tune a 2008> Toyota. everything is encrypted changing not only the how the software plays with the chip but else the encryption.

[@isaacclark9825]

@@crazeguy26 That is not part of the topic under discussion. They would lockdown even without a chip shortage.

[@ABEL-cd2sp]

Digital twins look it up we use it for almost anything of this sort, became super popular in the last year, cuts down on wasted time, allows to save time on research as we can already simulate the behavior and locate the vast majority of problems and even allowed the vaccines to be developed faster as they were able to discard hundreds of thousands of COVID vaccine variants to locate a smaller pool that could be tested and researched with classical trials aka what gave us the vaccine a hell of a lot faster probably a year of time saved.

[@caty863]

These software rewrites don't happen on critical systems. If for instance the driver for your power seat is bugged, sending an over-the-air update to the software isn't a big deal

[@jerrytom3514]

Wow - great content!!

[@justjosh11]

I work in electronic component distribution - just a minor correction on your 16-18 week lead time estimate... It's more like 39-52 week lead time for a lot of semiconductors 😂🙁🙁

[@Commentator541]

Let us be real here, monopolies are forcing consumers to buy all these chips. I don’t need a lane assist, or an automatic high beam or a smart washing machine, or an LED lamp. These are being forced on all of us.

[@andredrabs3299]

In the world, it's NOT what you don't want or don't need what is important... when you will get a cardiac arrest (like i had) followed by a serious accident you will talk otherwise... For me, a forcefull lane keeping assist AND adaptive cruise-control wit stop/go/follow are LIFE-SAVERS and should be mandatory on every vehicle... It possibly could save MILLIONS of lives from people all over the world. So STOP talking about YOU....

[@clydedeloach9066]

I am very impressed with your detailed explanation of the semiconductor shortage. The only constructive criticism I have is like most reporters you mispronounce the word, silicon. You pronounce it as if it is the silicone in breast enhancements. It is not. It is the silicon from which integrated circuits are made…silicon-con not cone. Again, thanks for your very good work !

[@niconico3907]

Why do you guys have the same word for 2 differents materials?

[@DG-hw8it]

@@niconico3907 They want to confuse the world. Must be some kind of game 😊

[@stefanschopf8408]

Great content. Well done

[@allanchurm]

nice clear presented news ..subscribed

[@johnstonlildb8157]

How this “chip problem” could be fixed? 💡US could recycle the tons of electronic waste we produce instead of just throwing those items in the trashing! Have the good parts detached and Reuse them! So instead of just allowing these items to sit in the elements at some junk yard/dump site to be either Crushed or Burnt like what Is done now!

[@thelayman6189]

That's great thinking about another kind of problem due to chips ... Incidentally, the problem being addressed here is a different one ... thanks matey !!

[@herrunsinn774]

10:57 "The world's largest manufacturer of third-party semiconductors is based in Taiwan, an island that is experiencing its worst drought in 50 years." That will be nothing compared to the disruption coming when China invades Taiwan. The "West" should assume the worst is coming and build plants elsewhere before China makes its move... and it will.

[@Jimblefy]

0:54 Great man bun dude :)

[@davidaltonberg8986]

From my experience as an AT&T / Lucent Technologies chip manufacturing employee, I have seen them close up a state-of-the-art plant in Orlando, Florida and move it to Malaysia. This was all based on profit margins, even after local and state government gave them millions to keep the plant open and modernize. Lucent took the money and ran to Malaysia. Treacherous actions by a so-called American company. Oh, did I forget to mention the massive layoffs of America workers? Really sad!