Asian Stocks Down as China Evergrande Crisis Not Over Yet Stock Markets By Gina Lee Investing.com – Asia Pacific stocks were mostly down on Friday morning, as concerns about the impact from China...
Chip shortage to cost automakers US$210bil- Silterra Poised to Benefit From This
Publish date: Fri, 24 Sep 2021, 10:40 AM
NEW YORK: The cost of the intractable semiconductor shortage has ballooned by more than 90%, pushing the total hit to 2021 revenue for the world’s automakers to US$210bil .
That’s the latest dire forecast from AlixPartners, which predicted global automakers will build 7.7 million fewer vehicles due to the chip crisis this year.
That’s nearly double the consultant’s previous estimate of 3.9 million in lost production.
Despite ongoing efforts to shore up the supply chain, semiconductor availability has worsened as automakers exhaust stockpiles and other industries have no more to spare.
“The barrel is empty, there’s nothing left to scrape,” Dan Hearsch, managing director of AlixPartners automotive and industrial practice, said in an interview.
“Going forward, sales will suffer. Sales hadn’t suffered because there was enough inventory to draw from. It’s not there anymore.”
Automakers have begun warning the problems are metastasising and could crimp third quarter earnings, with Volkswagen AG’s truck unit Traton SE the latest to sound the alarm on Tuesday.
Key supply centres in South-East Asia have been hit with factory shutdowns as Covid-19 outbreaks spread. It now takes a record 21 weeks to fill chip orders and auto executives say the shortage could last for years.
“It certainly feels like the most protracted supply shortage the industry has seen because it’s not over,” Hearsch said.
“It’s certainly the most far-reaching. This is every place. This is everybody.”
As inventory on dealers’ lots has dwindled, car prices have skyrocketed, reaching a record US$43,355 in the United States in August, according to researcher Cox Automotive. Supply is so constrained, some dealers have resorted to renting cars so they have something to display in their showrooms, Hearsch said.
The chip shortage began late last year when automakers underestimated demand as pandemic restrictions loosened.
The crisis has defied resolution, thanks to acts of nature, fire and Covid-19.
This is the third estimate AlixPartners has issued this year on the financial impact of the shortage.
It began by predicting in January it would cost the industry US$61bil and then lifted that to US$110bil in May.
Hearsch said he couldn’t guarantee there won’t be further upward adjustments to the forecast given myriad uncertainties facing the industry.
“Frankly, it’s just not getting better,” Hearsch said.
“People are adjusting to the fact that this is going to take much longer than we all thought.”
MITI identifying strategies to promote EV production, sales and charging infrastructure in Malaysia – Azmin
The government says it is in the midst of identifying new strategies to promote the electric vehicle (EV) industry in Malaysia among foreign investors. According to international trade and industry minister Datuk Seri Azmin Ali, these are expected to outline a number of specific initiatives, including those to strengthen the development of the EV ecosystem.
This includes the manufacturing of critical components, the establishment of standards to support the EV ecosystem and encouraging research and development activities to develop local technologies. (SILTERRA greatly benefits and participating)
Speaking at the Dewan Rakyat earlier today, he said elements focusing on policy formulation efforts were discussed with the finance ministry recently in a Budget 2022 dialogue, and these included plans for an incentive package to attract investment in addition to strengthening existing incentives for the production of EV vehicles and components as well incentives focusing on consumers. (FOXCONN ,CGP and DNEX might be capitalising on this)
He added that the move, which is in line with the government’s goal to reduce carbon emissions by the transport sector, is expected to encourage investment in terms of EV production or its components, develop infrastructure support including EV charging stations as well as increase consumer demand for EV vehicles.
Earlier this year, it was reported that the new EV policy would offer a “handsome level” of tax incentives, including fixed incentives that will benefit both users and the industry, and a host of benefits for EV adopters.
According to Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari, users could look forward to direct incentives such as lower road tax, the benefit of a green parking scheme, toll rebates as well as rebates on the installation of home chargers.
He said this would be on top of a huge tax reduction for EVs, which would enjoy zero excise and import duties, full sales tax exemption and zero road tax. Hopefully, more details of the new EV policy will emerge in the Budget 2022, which will be tabled in Parliament at the end of October.
Sleepwalking ka? Dnex drop bcause it has china partner. Evergrande impending collapse will cause credit problem in china. No money to fund silterra turnaround.
Carsem or Carter Semiconductor has been in the OSAT Outsourced Semiconductor Assembly and Test since the late 1970's or early 80's. HL through MPI bought them over in the 1990s' (thereabouts).
The other grand-daddy of local OSAT is KESM also in late 1970's early 80's. They however does only the "T" portion - testing and burn-in. Chips need to be baked and tested before shipping to customers.
Let me explain in a very simple manner.
Imagine if you are baking some cupcakes. you would get OSAT equivalent - A to make the mixture for you then send to T who will bake them for us using moulds (burn-in boards)
Except often that not those moulds are customised. Hence you have listed companies and others making those burn-in boards.
Some like bunnies, teddy bears, sharks etc in shape la ..
If i can stay awake for next 30 mins i might get a list of burn-in boards manufacturers that are listed. Worth taking a look.
Frankly if you are talking EV about SilTerra you are doing a major injustice to the company.
SilTerra IS MORE THAN EV
SilTerra has a broad range of its own products like in MEMS and bio-science realm.
SilTerra has general equipment that makes kind of products based on the designs of other - this is what is meant by PURE PLAY foundry.
Another simple explanation - SilTerra is like those shops where you go develop your holiday shots. You bring the negatives or they develop it for you and then print out the photos. That's what SilTerra does.
I want to bring a sense of reality and expectation to people here.
Heck we don't even know how much EV chips can SilTerra produce. The 46K is where they starts. Then you have to account for breakages and defects. And you also need to account for the back end equipment of which NOT ALL can finish the process for EV chips.
So net of net of the 46K?
So please don't just EV here, there and everywhere ...
It's more than EV here and the demand is across the board of useage ..
@JohnnyWalkerBL, Among the people here, guess you know most about semiconductor and can write precisely based on what you know (not like others who are good in cut and paste information) about semiconductor,.. IDM, pure foundry and fabless. The wafer yield is also based of the complexity of the IC design and its processes. Thus defect dices are inevitable... The price per wafer also varies depending on the complexity of the design. Thus the 46K brings nothing much not until we know exactly the final product. So many unknown variables here, and yet some experts here can really workout a formula to determine what they like to determine....
I am just sharing knowledge in hope that we will have more knowledgeable investors who are then able to provide some form of check and balance to the Board and its executives.
I believe financially many here are able to do that and challenge the boad if needed.
Worst case - touch wood - if they (and I) lose money on the counter at least we know why ..
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
derrickinvestor
9,099 posts
Posted by derrickinvestor > 2021-09-24 10:25 | Report Abuse
betu betul.sell on news