Everything you need to know about the global chip shortage

Decoder with Nilay Patel

Vox Media Podcast Network

Business, Technology

4.2 • 3.4K Ratings

🗓️ 31 August 2021

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Since the beginning of the pandemic, the demand for microchips has far exceeded supply, causing problems in every industry that relies on computers. And if you’re a Decoder listener, you know that that is every industry. Right now, major automakers have unfinished cars sitting in parking lots waiting for chips to be installed. Game consoles like the PS5 and Xbox Series X are impossible to find. And even things like microwaves and refrigerators are impacted, because they contain simple controller chips. So we realized it was time to figure out what caused the chip shortage, why that happened, and how we are going to get out of it. My guest today is Dr. Willy Shih. He’s the professor of management practices at Harvard Business School. He’s an expert on chips and semiconductors — he spent years working at companies like IBM and Silicon Graphics. And he’s also an expert in supply chains — how things go from raw materials to finished products in stores. Willy’s the guy that grocery stores and paper companies called in March 2020 when there was a run on toilet paper. If anyone’s going to explain this thing, it’s going to be Willy. Links: What toilet paper can teach us about supply chains https://www.youtube.com/watch?v=ihd7XJMzdG4 The latest in the global semiconductor shortage https://www.theverge.com/2021/4/2/22363232/global-semiconductor-chip-shortage-pandemic-consoles-cpus-graphics-cards-cars Ford to build some F-150 trucks without certain parts due to global chip shortage https://techcrunch.com/2021/03/18/ford-to-build-some-f-150-trucks-without-certain-parts-due-to-global-chip-shortage/ Situation regarding semiconductor plant fire and product supply https://www.akm.com/us/en/about-us/news/information/20210122-information/ Samsung forced to halt chip production in Austin due to power outages https://www.theverge.com/2021/2/17/22287054/samsung-chip-production-halted-austin-winter-storm-uri-power-blackouts About that White House meeting to discuss the semiconductor supply chain https://www.forbes.com/sites/willyshih/2021/04/12/about-that-white-house-meeting-to-discuss-the-semiconductor-supply-chain/?sh=63b7f65b1641 Ford CEO Jim Farley on building the electric F-150 -- and reinventing Ford https://www.theverge.com/2021/5/20/22444294/ford-f150-lightning-pickup-truck-jim-farley-interview Senate approves billions for US semiconductor manufacturing https://www.theverge.com/2021/6/8/22457293/semiconductor-chip-shortage-funding-frontier-china-competition-act Intel invests $20 billion into new factories, will produce chips for other companies https://www.theverge.com/2021/3/23/22347250/intel-new-factories-arizona-20-billion-chips-outsourcing-foundry-services-manufacturing Apple supplier TSMC confirms it’s building an Arizona chip plant https://www.theverge.com/2020/5/14/21259094/apple-tsmc-factory-chips-arizona-a-series Biden-⁠Harris Administration announces Supply Chain Disruptions Task Force to address short-term supply chain discontinuities https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/08/fact-sheet-biden-harris-administration-announces-supply-chain-disruptions-task-force-to-address-short-term-supply-chain-discontinuities/ Water shortages loom over future semiconductor fabs in Arizona https://www.theverge.com/22628925/water-semiconductor-shortage-arizona-drought Transcript https://www.theverge.com/e/22412413 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Charge into a new era with the all-electric Cadillac Lyric.
0:04.9	Lyric electrifies an iconic brand with sophisticated style and luxury,
0:09.6	and it's as iconic as you.
0:11.5	Featuring the latest automotive technology, the 2023 Lyric Rear Wheel Drive
0:15.9	offers an EPA estimated 312 miles of range on a full charge.
0:20.6	Actual Lyric range will vary based on several factors including temperature,
0:24.1	terrain, battery age, loading, use, and maintenance.
0:26.6	2023 Lyric orders our full CDLR for 2024 availability details.
0:35.1	Hello and welcome to Decoder.
0:36.5	I'm Neil Appetel, Editor in Chief of the Verge,
0:38.7	and Decoder is my show about big ideas and other problems.
0:42.9	Today's episode is about an enormous problem that requires enormous ideas to solve,
0:48.7	and enormous amounts of money, the chip shortage.
0:52.9	One of the things we try really hard to do on Decoder every week is connect themes across our interviews.
0:59.2	There are just some problems and ideas that come up over and over again,
1:04.0	and the chip shortage comes up in almost every episode we've done.
1:08.0	Since the beginning of the pandemic, the demand for microchips has far exceeded supply,
1:14.0	causing problems in every industry that relies on computers.
1:18.3	And if you're a decoder listener, you know that every industry relies on computers.
1:23.6	Right now, major car makers have unfinished cars sitting in parking lots waiting for chips to be installed,
1:29.6	and that's when they can even manufacture the cars at all.
1:32.8	Game consoles like the PS5 and Xbox Series X are impossible to find,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Vox Media Podcast Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Vox Media Podcast Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.