Tuesday, October 5th 2021
TSMC Claims Some Companies are Sitting on Chip Inventories
It appears that some of the current chip shortages might be artificially induced by one or multiple companies in the chip supply chain, according to an article by TIME Magazine. The article is taking a look at the role TSMC is playing in the global chip production industry and TIME has interviewed TSMC chairman Mark Liu among others in the industry.
Mark Liu is quoted as saying "But I told them, "You are my customer's customer's customer. How could I [prioritize others] and not give you chips?"" when asked about the complaints by car makers, since they were among the first to suggest TSMC was one of the issues. Due to the various allegations against TSMC, Liu had a team collect data points to try and figure out what was going on and to see which customers were truly running low on stock and which customers that might be stockpiling for a rainy day.
The end result of this was that TSMC decided to reallocate some production to customers it deemed to be running out of stock, whereas those that appeared to be sitting on their inventory, for whatever reason. This was apparently not a popular decision, but it seems like a fair one, considering the current situation. Liu is again quoted saying "there are people definitely accumulating chips who-knows-where in the supply chain," suggesting that it might not actually be TSMC's customers that are the issue here, but rather middlemen and distributors that are hoarding chips and pushing up prices.
The article is worth a read if you're interested in a slightly closer look at TSMC, although it doesn't go into any more detail about the chip hoarding. On the other hand, it does look at the geopolitical issues that TSMC and Taiwan faces, while Liu also frowns upon the current US$50 billion budget that President Biden has allocated for new foundries in the US, considering that TSMC is investing twice as much on its own over the next three years.
Source:
TIME
Mark Liu is quoted as saying "But I told them, "You are my customer's customer's customer. How could I [prioritize others] and not give you chips?"" when asked about the complaints by car makers, since they were among the first to suggest TSMC was one of the issues. Due to the various allegations against TSMC, Liu had a team collect data points to try and figure out what was going on and to see which customers were truly running low on stock and which customers that might be stockpiling for a rainy day.
The article is worth a read if you're interested in a slightly closer look at TSMC, although it doesn't go into any more detail about the chip hoarding. On the other hand, it does look at the geopolitical issues that TSMC and Taiwan faces, while Liu also frowns upon the current US$50 billion budget that President Biden has allocated for new foundries in the US, considering that TSMC is investing twice as much on its own over the next three years.
99 Comments on TSMC Claims Some Companies are Sitting on Chip Inventories
TIME was a well respected publication. They double and triple check their facts about as often as a broken clock is correct on it's time.
I made the statement because their so called article is clickbait and sensational and has nothing to do with factual reporting and getting to the source of the problem. Never once in that article did they get to any point in which the title claims. At best it merely speculates on what could be happening. That is an opinion pieces, not news reporting.
If you still live here you also know how climate change is wrecking any decent effort we could make lately.
The fact of the matter is we have no idea how Alaska is doing in forest management because they live beyond where it is a real concern beyond preservation.
The difference between their "opinion" and your opinion about them is that they have journalistic MERIT. You do not.
We're not talking about CNN, The New York Post or The Washington Post who are known for shoveling BS. If we were discussing one of them, I would not disagree with you as your opinion would have plausability. Time is different. They are a class act, the staff of which strives for journalistic integrity. And you can not expect us to take you seriously without some supporting evidence..
So as the old saying goes: Prove up or...Because of......this. Alaska, as you might be aware being a resident of said state, is located in the temp zone of Earth known as the permafrost zone. Forrest fires can and do happen, but quickly sputter out because of the very large deposits of water embedded in the topsoil of the Alaskan tundra. Fires start, permafrost melts and fires quickly burn out. Water has that effect on fire, which is why it is the primary fire-fighting element.
However, I digress as we're off-topic again..
For what it's worth, the NY Post is the oldest print newspaper in the US. It was started by Alexander Hamilton.
As for TIME and the NYT, these are not my opinions on these outlets. I've already talked about the NYT falsely reporting on the number of children in the hospital. That is a fact, and not opinion, on that matter. If you can not get something as simple as the number of children in the hospital right, how do you expect people to trust you on more important matters.
The TIME article, as to which this whole string of comments are on, is evidence unto itself as the article never gives you any proof or evidence of what the title of the piece claims. Who is holding up all these chips? TSMC never says and TIME never bothers to get to the bottom of it. The writer spends more time opining away about what the possibilities might be then actually getting out of the chair and chasing down the actual facts.
Your disapproval of what I have said lies not in the facts of the matter, but possibly because of bias opinions you have on the media outlets.
This is why you can't see beyond your own biases. Until you can admit you're wrong, you'll never understand why people say these things.
Have a nice day..
That said, OP was a little sensational about their reporting. “Some companies” doesn’t really represent what the quote from TSMC that TIME used to make their own sensational headline.
Then, that’s why you read the articles :shrug:
TIME lied by way of lazy reporting which is rife (lazy reporting) in all the national media outlets. Sure there are a few actors that lie on purpose to mislead, but they are few and far between.
There's a good article from Glenn Greenwald about the changes in how the large national media outlets changed the way they report about things post Former President Trump. Regardless on anyone's thoughts on the whole Hunter Biden thing, it's a good read on how things changed in media outlets after the Trump-Russia collusion story: My Resignation From The Intercept
Look at it this way: how can they plot an investment when there is no market for it? Opening a gap between the demand and output seems like the best way to carve out a share of the market away from your foreign competitor you so chose to rival.
When I said all media outlets lie, it was in the context of TIME, NYT, Detroit Free Press. Why would you assume I'm talking about smaller media outlets in that context?
From the beginning I also said they lied but did not specify. Why would you assume it was some grand conspiracy to lie (as if by deliberate intent) when I never said it? That is why I stated that they lie by lazy reporting and not following through on thoroughness of investigation.
www.merriam-webster.com/dictionary/all
You're not weaseling your way out of this. You said it, own it. Either admit you're wrong or move along.
(if I understand this correctly.) Its very shady behavior. I'll be going AMD next generation thats for sure.