The consequences of the global chip shortage have spread like an oil slick in recent times. In addition to the automotive industry, manufacturers of household appliances and consumer electronics are also affected.
An inventory of the NOS among Dutch retailers shows that one party is not aware of it, while the other is severely affected. “The delivery time of products has never been so bad”, says Hans Peter Rietveld, responsible for the Dutch stores at the audio specialist Hifi Klubben. “Our purchasing and planning is in Denmark, I can imagine it is a crisis there every day.”
According to Rietveld, speaker manufacturer Sonos is very bothered by it. The manufacturer confirms this but says the situation is improving. Nintendo has warned that the shortages could hit the Switch game console.
Industry surprised
Franchise chain White goods specialist says that dishwashers in particular are difficult to get. Ed Bindels, CEO of Apple retailer Amac, sees delays in the delivery of laptops and desktop computers that have self-designed chips from the manufacturer on board. Bol.com also has stock problems.
According to Stefan Verhoeven, director of Miele Netherlands and chairman of the trade association for household appliances, the industry is surprised by the increased demand. Verhoeven says that customers should expect longer delivery times until after the summer.
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If one dishwasher is not available, we will supply another model.
Other parties see fewer liver problems. For example, Herman Bramer, CEO of BCC, says that the chain “notices a little bit”, but that it is manageable. “If one dishwasher is not available, we will supply another model.” MediaMarkt says it can handle any stock problems well. Coolblue did not respond to questions from the NOS.
Why some are more affected than others can have various causes. It can differ per supplier and even per model whether a product is easy to obtain. In addition, smaller retail chains or independent stores have less purchasing power, so they are more likely to run out of stock.
The chip shortages have been there for months, they are caused by the demand, which is much greater than the supply. The auto industry remains the hardest hit sector; last month, the shortage in the US cost 27,000 people their jobs.
This week VDL NedCar in Born stopped production for the second time in a short time. According to Stan Berings, who follows the automotive industry for consultancy firm PwC, it is a sign that the problems in that industry are serious.
The shortages there arose because the auto industry canceled massive orders early last year due to the corona crisis, and then had to pull back when the market picked up again. Then it turned out that consumer demand had increased enormously: people spend much more time at home and invest their money in new equipment.
Major chip manufacturers expect the problems to last until next year and maybe even longer. There does not seem to be a solution that takes the pressure out of the market in the short term.
Producing a chip is a complicated and lengthy process, says Bram Nauta. He is professor of electrical engineering at the University of Twente and is involved in chip design.
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You have to apply a layer of ‘paint’ on the chip, atom by atom.
Making a chip is comparable to the restoration of a painting: it goes layer by layer, the professor explains. “You apply a new layer, sand it again and polish it. On the chip you have to apply a layer of ‘paint’ atom by atom. It is all very slow, it is a very long process.”
Is something going wrong with the production? Then you only find out at the end, says Nauta. Then you start all over again. So a lot has to be tested to arrive at the right production formula.
TSMC, a major chip manufacturer in Asia, is not only dealing with enormous demand. The company, based in Taiwan, is also facing severe drought.
The problems have also put politics on edge. This week, the European Commission announced an alliance with the chip industry and academia. Many plans are still unclear and will have to be worked out in the near future. The US has already set aside $ 50 billion for its own chip industry.
Automakers are now choosing a different route, writes Bloomberg news agency. For example, Nissan is omitting a navigation system from thousands of cars, Renault supplies certain SUVs without a large screen behind the wheel and Peugeot has resorted to analogue speedometers.