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fardough t1_j684whf wrote

All I know is this should not stop plans to bring advanced chip making back to the US.

Isn’t the current supply spike in regular pc chips? The is still a shortage on automotive chips and advanced chips.

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CMG30 t1_j6967ur wrote

Cars are expensive because 'chip shortages'. Intel tanking because 'chip glut'.

Hmmm.

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memberjan6 t1_j69ej08 wrote

Why not both? Intel's type of chips might not be cars' type of chips.

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Ancient-Blueberry536 t1_j6chu68 wrote

Can’t believe that comment got upvoted in r/technology of all places.

Oh wait, this is reddit

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aneeta96 t1_j6ay0xc wrote

A glut in consumer chips according to the article. Not the specialized ones in vehicles.

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Ancient-Blueberry536 t1_j6chor0 wrote

The mature market is actually 28nm/14nm chips, not high end CPU/GPU processors.

A lot of it is caused by the panic to ‘bring semiconductor manufacturing back home’ where fabs concentrate on sub 7nm while neglecting the rest of the chip market.

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Maleficent-Drawer-18 t1_j6azgz5 wrote

Automotive grade chips differ than commercial or industrial chips. The lack of PC sales have glutted the market. Companies like TI focused more of their Covid restart in the automotive market, Intel gambled on commercial. The testing of commercial and industrial chips isn’t as stringent.

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aquarain t1_j689ssr wrote

Frankly chips just aren't worth as much when competition enters the market. Monopoly lifts prices. That's why companies do it.

Monopolist prices are also what opens the opportunity to upstarts. They get a leg up that they only have to be competitive to monopoly prices, not free market prices. That's the money they use to reach parity. Once parity is achieved all the industry players struggle to profit as margins plunge. And that's good for the consumer.

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Minute-Flan13 t1_j696z78 wrote

Is the glut related to the Chinese market being declared off-limits?

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Ancient-Blueberry536 t1_j6cj706 wrote

That and efforts to reshore chip manufacturing started by Trump.

With passage of the CHIPS Act it will only get worse for high end CPUs/GPUs.

Good for consumers tho!

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Inconceivable-2020 t1_j6a558s wrote

Chip Glut: the inevitable result of claiming that there was a Chip Shortage.

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postart777 t1_j6a8gzd wrote

I'm getting the feeling that these people don't know what they are doing.

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Due-Resident-4588 t1_j6b2blz wrote

Nobody has money to buy pc hardware right now unless you want to go into debt over it which is obviously stupid. The fake stimulus money is gone and we’re seeing record high inflation here in the United States. I fear things will only get much worse before we get better.

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