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=ihd7XJMzdG4The latest in the global semiconductor shortage https://www.theverge.com/2021/4/2/22363232/global-semiconductor-chip-shortage-pandemic-consoles-cpus-graphics-cards-carsFord 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-droughtTranscripthttps://www.theverge.com/e/22412413 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Jim Farley, President and CEO of Ford, shares insights on the company's financial outlook amid challenges like potential $2 billion profit declines and tariff turmoil. He discusses how new tariffs could reshape strategies in the auto industry, particularly under the USMCA. Farley emphasizes Ford's commitment to electric vehicles and the necessity of consumer satisfaction for future growth, while addressing the critical impact of vehicle pricing on market performance and stock dynamics.

Jim Farley, CEO of Ford Motor Company, shares his expertise on the evolving automotive landscape. He highlights Ford's advancements, like the F-150 Lightning, and discusses the rising influence of Chinese EV manufacturers such as BYD and Haval. The conversation also touches on the challenges and opportunities traditional automakers face as they adapt to rapid market changes. Farley delves into the importance of hybrid technology and the emotional connection consumers have with vehicles, setting the stage for a revolutionary future in transportation.

Sarah Ketterer discusses market impact of higher rates, Ralph Schlosstein talks about returning deal activity. Raghuram Rajan explains India's future post-election, and Jim Farley explores Detroit's decline and comeback with Ford CEO.

Marques is back! Fresh from the Met Gala, Marques and Andrew spend the first few minutes recapping the experience before diving right into the potential new Twitch revenue sharing and why streamers aren't too happy with it. Then they dig into the Subaru Solterra and some other EV news. We finish off the episode by answering trivia questions so make sure you stick around to find out the answers.Links:Nilay Patel and Jim Farley interviewFord F100 videoVogue interview with MarquesTesla article about bonusesTwitters:https://twitter.com/wvfrmhttps://twitter.com/mkbhdhttps://twitter.com/andymanganellihttps://twitter.com/adamlukas17Instagram:https://www.instagram.com/wvfrmpodcast/Shop the merch:shop.mkbhd.comJoin the Discord:https://discord.gg/mkbhdMusic by 20syl:https://bit.ly/2S53xlCWaveform is part of the Vox Media Podcast Network. Learn more about your ad choices. Visit podcastchoices.com/adchoices