Quote:
Originally Posted by PoorMans180SX
Sorry I wasn't more specific, but this thread is about engines, so I wasn'
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Quote:
Originally Posted by Future240
Like the worldwide silicon shortage.
No one talks about how entire auto plants have shut down due to this.
Demand for products that need chips from these fabs has jumped across the board.
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Ironically the shortage of engines is directly related to chip fab capabilities.
Just think of engines as existing suppliers of semiconductor chips. When there is only so much capacity to manufacture (or scour existing markets/yards for engines) you can only sell so many.
Add in a spike in demand with a drop in supply and you have the perfect recipe for price jumps.
In the case of chips, the main spike is a supply chain that is already maxed out, made worse by reduction in manufacturing (Renasas) for a segment that is growing rapidly (advanced chips for automobiles). All the other companies are either maxed out (TSMC/Samsung) or haven't ramped up anything yet to produce. TSMC/Intel/Samsung are all adding a lot of 3rd party fab capability in the next few years, but it's at least 2-3 years before the factories can come online, and that's assuming there's enough qualified engineers to staff the fab lines.
The supply side of engines will figure out a way to find more sources, since everyone is after the same thing (sales/profit). As for where these engines come from, it ultimately will be dictated by who can sell from where, and since prices for complete cars are going up, there is no longer an incentive to sell a motor when you can sell a whole car and recover your car much faster.
(keep in mind motor exporters are not just doing one type of engine. the entire used engine market drives the cost aspect of this because you'd have to import one container at a time to make it worth your trouble)