What's causing the Global Chip Shortage? (Chips Analysis Pt. 1 of 2)

[@CuriousElephant]

Here is my analysis of Singapore's second shot at making chips. Check it out here - thedisrupted.substack.com/p/singapore-is-betting-on-chips-again

[@wholenutsanddonuts5741]

It’s astounding how much useful information you packed into 10 minutes. Excellent work as always!

[@lodewijk1036]

Great informative video packed in 10 minutes. Looking forward to the next part and reading the newsletter!

[@dust1209]

Amazing how well you're able to explain such a complicated market in such short order. You timed this video perfectly too as I've found myself wondering in the past week what is causing the chip shortage, as I imagine many others are wondering as well. Hopefully these videos take off for you! I'm looking forward to part 2!

[@dust1209]

Also, the acompanying Disrupted article is incredible!

[@Andytlp]

I usually dont plug other channels but asianometry did a video on potential reasons for chip shortages. Think that guy is underrated for how informational they are. Apart from obvious stuff like disrupted logistics, vastly increased demand, theres some water shortage in taiwan. Apparently cleaning wafers use absurd amounts of water even when 40 to 70% of it is recycled. It has to be completely pure water, no particulants even on atomic level. So much that they even have to take away farming water allocations lol. its a big deal.

[@killerful]

TSMC is not fabless. They do one thing really good, and that's literally the fabrication of chips with their own fabs. AMD is fabless, and orders their chips from TSMC. So does Apple. Even Intel with their own fabs is putting in orders at TSMC. Yes they an important part of the "fabless industry" but they are literally the guys with the fabs. It's misleading to include TSMC under "fabless".

[@tamsi8636]

He did a small oppsie. I agree with you.

[@elopeous3285]

Ayy its been a while since ive seen your videos. Keep up the good work man.

[@CuriousElephant]

Back for a month, check out other new videos too. KZbin’s taking longer to suggest my vid to all of you :)

[@frankdaze2353]

Hey man this was great. You’ve done an awesome job of providing ample detail without getting bogged down in the technical stuff. Great production and cohesive infographics too. Keep it up!! 👍👍

[@vittorio-i5j]

As an electronic engineer i have to compliment you for the the video, you summarized in a 10 minutes video the most advanced industry and supply chain in the word. Of course there are some inaccuracies but honestly i couldn't explain it better. Great work.

[@jimurrata6785]

Coming back strong Lei! 💪 Great to have a Singaporean perspective to contrast with the Taiwan focus of John at Asianometry.

[@jamesbramlett5407]

U always have a knack for delivering the key data points at the best possible time. Another one, well done

[@gauravbhatnagar6219]

Your explanation is always awesome bro, 👍 The variety of topics covered to the excellent vedio quality & narration all is worth having million of subscribers.

[@Rocky_handsum]

Buddy nice work

[@kristiankho]

Incredible video! waiting for part 2

[@TheFloorface]

dont be afraid of making longer videos. i mean i have no idea what hoops you might have to be jumping through with youtube to get your videos seen but id gladly watch longer more in depth content from you. as im sure many of your other viewers would

[@jonathanwilson3254]

I suspect that there will be geographic consolidation of the supply chain (IDM) in the USA for technologically advanced chips.

[@Stellar-Cowboy]

It all depends on the turn the US wants to take: does it want to combat China’s advance in tech, and promote long term growth, or does it aim to destroy itself by putting conservatives against progressives

[@jonathanwilson3254]

@@Stellar-Cowboy Some things are in their essence mutually incompatible. In such cases 'peaceful' resolution is made through separation and not through a vain attempt at reconciliation. Wisdom is in knowing when such a condition exists and acting accordingly. The dictatorship of Chinese socialism is inherently incompatible with the idea of individual freedom as defined in the US constitution. The political and economic consequences of such mutual exclusion is, in terms of chip technology, that the US will geographically go the IDM route, just as much as the Chinese wish to do the same. Indeed, Taiwan is the crown jewel for China in this regard. With Biden as US president, the problem for the Chinese is no longer to worry about what the US would do about a Chinese take over of Taiwan (nothing materially), but rather how to execute the take over of Taiwan without damaging these prized strategic assets!

[@Stellar-Cowboy]

@@jonathanwilson3254 let us proceed to the old debate then... Did Trump really do such a great job at keeping China at bay? Did he do anything to prevent China from extending its influence in Hong Kong or Taiwan? Is “America first” the best strategy when it comes to growing an economy? This last one is particularly interesting because most conservatives (I am a progressive, but I don’t like Biden) think Americans have to be the center of everything for America to thrive. In reality, it is the opposite. China is rapidly gaining market share in Europe and South America, and Asia and Africa are already theirs. With the whole world apart from North America as potential trade partners, don’t you think that it will quickly overtake the US? Because America first is great and stuff, but if the US only has 350 million clients when China has more than 7 billion, you can brag about your constitutional rights all you want, that won’t help you when China’s economy overtakes the US’s.

[@jonathanwilson3254]

@@Stellar-Cowboy Most conservatives think that the USA should NOT be the 'center of everything'! The US economy has strategic depth and twice the aggregate consumer spending power of China. And it is consumer spending power that drives upstream supply chains. China is now engaged in economic policies that will ultimately condemn its middle classes to weak levels of consumer purchasing power. You should not count heads as the sole basis for economic power.

[@Stellar-Cowboy]

@@jonathanwilson3254 when you’ll have seen how much China has grown over the last 3 decades, compared to the US, then we can talk. By the way I’m in Europe. I don’t like the American way of life much, but I sure love it compared to Chinese dictatorship and their absence of free speech. So I’d appreciate it if America and Europe collaborate to regain control over the world, like it was in the middle of the 20th century.

[@code4chaosmobile]

Excellent video, can't wait for the next in line. My bro works in supply chain related field and has seen first hand the ripple effects of covid on the availability of so many products and materials needed for day to day.

[@ourcollectivewisdom8769]

You’re operating on a whole different level man.

[@Jako4460]

Great video

[@MongoosePreservationSociety]

Yes!

[@goutam5052]

Wow.. I didn't notice that video is finished

[@kaydesign]

Here in the Netherlands ASML couldn’t ramp up supply because of a shortage of very complex lenses build by Carl Zeiss in Germany. So everywhere there is a dependence on other key players : )

[@oliversparks1459]

Fascinating Subject

[@aelaan12]

This was awesome, great research and explaining the logistics. What would be the next step forward? Transistors, ok, but in the past 70 to 80 years we must have invented something different? I understand the optimizations but it cannot keep going like this, we will run into products that will not last long as heat needs to be able to escape and with crowded dies that becomes more and more difficult.

[@dinesh12981]

Nicely explained brother !

[@trevorvanbremen4718]

It looks like Curious Elephant doesn't like to have his MISTAKES corrected.

[@UdahamulleNdarathanaHimi]

Great job👍

[@ryanb9749]

7:12 hey look it's an NS410, I think.

[@abdaf8706]

Great job! I like it

[@mylesgeraghty]

why have the last 2 videos not been put on Nebnla?

[@fensoxx]

You didn’t go much into the vertical integrated players or the investments made during COVID to solve this issue, guessing video 2?

[@DN-xl3kq]

Fear. #security

[@CHMichael]

I learned today that Europe was making 40% of chips, now they make 9%

[@theoschijf8155]

Like your video’s a lot. Thanks. This time however, for me, you do not answer the title. You describe the processes and the businesses involved. But what is the main reason for the shortages? That is not clear to me. Is it the chemicals? Is it the wafers? Is it the lack of investments to go to 3nm technology? Is it the trouble between China and US? Is it the brick wall of 3nm technology (have we reached the limit) where the market keeps asking for exponential growth. Which is the big one?

[@IbrahimNgeno]

It's all the above and even when you "solve" for one the others are still an issue and by the time you solve another, the first one may be back to being an issue

[@elvinsworld11]

Lovely

[@ourv9603]

The reason for the worldwide chip shortage is a shortage of SILICONE. HOWEVER, there has been a snot nosed upstart hiding in the shadows. SILICONE CARBON. Alot of companies are re designing with SC. !

[@larrypan6811]

TSMC is the leading foundry, not fabless…

[@LZentertainments]

Don't quite get how you can call a foundry like TSMC fabless... They have all the fabs. Apple, Huawei, NVIDIA, AMD those guys are fabless

[@EinChris75]

Mentor is owned by Siemens AG.

[@TennessseTimmy]

i just got some lays in case we are running out of chips

[@chuck2200]

its rather diturbing that semi conductors and microprocessors can only be manufactured overseas....U.S. based companies outsourcing everything is bullshit.

[@cy-one]

Argh! You need to warn people returning from a year of hiatus watching your videos that you're now equipped with a camera! Nearly gave me heart attack :D Good video, just as I'm used to :)

[@yash_jivrajani]

Where were u for 3 months?

[@lukat9702]

TSMC is not fabless!

[@ryanb9749]

High demand... that's it.

[@zackjoubert5207]

Tesla's Dojo has *50 BILLION TRANSISTORS* over three times the amount stated in the M1 chip! Significantly better!

[@genuinennessbefitting4734]

How can that be possible? Samsung's 5 nm is equal to TSMC's 7 nm, and its 7 nm is equal to TSMC's 10 nm; Samsung has always been bragging about its nano capability. Tesla is making its chip with Samsung's 7nm, not even Samsung's 5nm; how can a fake Samgsung 7 nm be better than 5 nm real deal from TSMC? M1 max contains 57 billion transistors. Please check the Apple site.

[@sallerc]

442 quadrillion flops... or you could say 442 petaflops like a normal person :)

[@st3467]

I don't think the above videos explain properly why there is a shortage. Actually I feel it's not a political thing but a technological one There are many foundry for fabrication but tsmc and samsung had tech advantage others could not replicate. So everyone jumped on this two without backup plan. These two were not able to scale up and backlogs continued 5 years back tsmc only big customer is nvidia. Now amd nvidia Qualcomm apple huawei and even intel chips are made by tsmc. And all high-end servers, auto chips, super computers, desktop cpu are dependent on this companies. They are willing to wait rather than using less performance chips so the shortage That's why tsmc invested 20 billion for expansion, they will renegotiate and get more price their chips as they have monopoly this triggered price increase that indirectly increased price of products and people delayed buying, as sales are down this affected profit margins and product price are increased further There is no political or pandemic affect just everybody wants best and are willing to wait

[@zoltankurti]

Please never ever say quadrillion again. No normal person knows what a quadrillion is, and on top of that a quick google search seems to indicate they mean different things in the UK and in the US.

[@joseandrade7290]

Not trying to be a hater but I think you need more focus on your videos. Don't think there was any real useful information here.

[@gmaildinozz]

High demand, you're welcome.