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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[michaelairheart]

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.

[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.

[liamfarrugia]

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.

[AkkerKid]

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

[smorris]

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

[Mrbfgray]

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

[DefekCs]

I have never opposed an idea expressed in video/Youtube 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 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

[shinigamilee]

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.

[loeysf]

This vid is actually one of the most cogent and accurate explanations of the global automobile semiconductor shortage I’ve seen on YouTube. Congratulations.

I’m glad I subscribed to this channel when I ran across it a couple of months ago. Great content!

[themcpharaoh]

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

[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.

[jameshoffman]

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

[bobholmes]

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.

[milesobrien]

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

[kstaxman]

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.

[almcdincanterbury]

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

[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.

[givemeabreak]

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

[OperationXX]

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

[chriscollinsradio]

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.