Tesla, Ford, Apple grapple with a chip shortage. Experts question if demand is overblown.
SIMONE DEL ROSARIO: IT’S THE REASON TESLA SAYS THEY CAN’T MAKE ANY NEW MODELS THIS YEAR. NO CYBERTRUCK, NO AFFORDABLE COMPACT CAR.
IT’S WHY DRIVERS ARE PAYING AN ARM AND A LEG FOR THE VEHICLES THAT ARE AVAILABLE. AND WHY CAR MANUFACTURERS LIKE FORD ARE IN THE DRIVER’S SEAT, DECIDING WHAT THEY CAN AFFORD TO MAKE AND WHAT CAN WAIT.
I’M TALKING ABOUT THE CHIP SHORTAGE – A NEAR-2-YEAR PROBLEM THAT’S COST THE AUTO INDUSTRY HUNDREDS OF BILLIONS OF DOLLARS IN REVENUE AND LED TO A SHORTAGE OF EVERYTHING FROM GAMING CONSOLES TO SMARTPHONES.
WE’VE TOLD YOU ALL ABOUT IT BEFORE AND LIKE PREDICTED, THE PROBLEM CONTINUES TO PLAGUE COMMERCE IN 2022.
BUT WHILE COMPANIES CLAMOR TO GET HANDS ON THESE LITTLE SEMICONDUCTORS, THE BRAINPOWER BEHIND ELECTRONICS, A PROBLEM IS BREWING ON THE ORDERING SIDE, AND EXPERTS ARE WORRIED IT WILL SOON BOIL OVER.
WITH DEMAND FAR OUTPACING SUPPLY, WE’RE SEEING COMPANIES AND GOVERNMENTS SPEND BILLIONS TO BUILD OUT MANUFACTURING CAPACITY. BUT THE DEMAND MAY NOT BE AS REAL AS IT SEEMS.
STACY RASGON: This is a phenomenon that’s known as double ordering. And so demand is really, really, really strong. And so people are buying everything, we actually don’t know how much of those parts are actually going into end products. We don’t know how many of them are going on the shelf. Of all of these orders that are driving lead times, we don’t know how many of them are real and how many of them are phantom.
SIMONE DEL ROSARIO: WITH IT TAKING SO LONG TO GET CHIPS, STACY RASGON SAYS COMPANIES ARE PLACING MORE ORDERS THAN THEY ACTUALLY NEED.
STACY RASGON: we saw this actually in our own lives with the toilet paper situation like a year ago.
SIMONE DEL ROSARIO: WHICH MEANS WHEN SUPPLY CATCHES UP TO DEMAND, WE COULD BE LEAVING A LOT OF CHIPS ON THE TABLE. AND THE SEMICONDUCTOR BUBBLE COULD BURST. I’M SIMONE DEL ROSARIO. FROM NEW YORK IT’S JUST BUSINESS.