Odd Lots Stacy Rasgon on How the Global Chip Crisis May Be Getting Even Worse
Sep 16, 2021
Stacy Rasgon, a Managing Director and senior semiconductor analyst at Bernstein, sheds light on the ongoing global chip crisis. He discusses how pandemic disruptions continue to choke production, particularly affecting the automotive industry. Stacy also highlights the bullwhip effect and inventory mismanagement as contributors to the turmoil in supply chains. The conversation dives into the Biden administration's investment to boost U.S. semiconductor production, while touching on the long-term prospects and innovations in the sector. The talk successfully merges industry insights with personal reflections.
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Chips in Everything
- Semiconductors are no longer just for computers.
- They're now crucial components in phones, refrigerators, cars, and almost every major appliance.
Auto Chip Shortage Origin
- The auto industry's chip shortage began with cancelled orders during the pandemic's start.
- When demand returned, automakers faced long lead times and a backlog.
Semiconductors and the Bullwhip Effect
- The bullwhip effect is amplified in the semiconductor industry because chips are at the end of a long supply chain.
- Small changes in consumer demand create large ripples back to chip manufacturers.