Chip Shortage & Auto Industry | Key Reasons Semiconductor Shortage Hitting Car Manufacturers Hardest

This video explores the semiconductor shortage and its impact on the auto industry. One of the most surprising outcomes from the Covid has been the semiconductor shortage. The automotive industry has been very adversely affected, in particular. In this video, I want to explore three key reasons as to why the auto industry has been hit so hard by the chip shortage. ✅ SUBSCRIBE, NEVER MISS A VIDEO! ✅ 💙    / @financialintelligence7454   ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ✅ REFRENCES ✅ 📚 TSMC has the largest market share in the global semiconductor manufacturing industry: Counterpoints Research 💙 https://www.notebookcheck.net/TSMC-ha... 📚 The Global Chip Shortage Impact on American Automakers 💙 https://www.visualcapitalist.com/glob... 📚 The global chip shortage is starting to have major real-world consequences 💙 https://www.cnbc.com/2021/05/07/chip-... 📚 Carmakers have been hit hard by a global chip shortage — here’s why 💙 https://www.cnbc.com/2021/02/08/carma... 📚 Toyota North America will sharply cut production in August 💙 https://www.cnbc.com/2021/08/19/toyot... 📚 TURNING THE TIDE FOR SEMICONDUCTOR MANUFACTURING IN THE U.S. 💙 https://www.semiconductors.org/turnin... ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ✅ CHECK OUT MY OTHER VIDEOS ✅ 🟡 Best Mutual Funds & ETFs to Hedge Against Inflation [Vanguard, DFA & Schwab Index Funds] 💙    • Best Mutual Funds & ETFs to Hedge Against ...   🟡 Inflation & Bonds | How Higher Inflation Impacts US Treasury bonds 💙    • Inflation & Bonds | How Higher Inflation I...   🟡 Economic Deflation: How It Can Have Serious Negative Implications 💙    • Economic Deflation:  How It Can Have Serio...   🟡 Bitcoin & Governments [#1 Reason] Politicians are Opposed to Cryptocurrencies 💙    • Bitcoin & Governments [#1 Reason] Politici...   🟡 Vanguard is Still the Leader in Low-cost Mutual Fund Investing 💙    • Vanguard is Still the Leader in Low-cost M...   🟡 Fake Financial Experts: Similarities Between Financial Gurus and Religious Gurus 💙    • Fake Financial Experts: Similarities Betwe...   ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ #gm #ford #semiconductor #cars #detroit #autoindustry ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ✅ About this video ✅ Three key reasons as to why the auto industry has been hit so hard by the chip shortage: Reason #1: Just-in-time production methodology In order to find success with JIT, it’s important to find suppliers that are close by, or that can supply materials quickly with limited advance notice. The COVID-19 pandemic caused global chip shortages that have had more severe consequences for companies that rely on JIT manufacturing practices. Reason #2: Long lead times and cancelled orders In 2020, with panic, automakers cancelled some of their chip orders. By the time car makers realized people still wanted to buy their cars, they found themselves at the back of the line for the chips they needed. Because of the increased demand from the wireless and computer industry, new supply is hard to come by. Reason #3: Low profit margins of chips used in cars The car manufacturers don’t use the most advanced — or bleeding edge — chips which offer chip manufacturers higher profit margins. Therefore, there's no great rush to build older generation chips because the return on investment just isn't there. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ✅ About this channel ✅ Hi everyone! My name is Hamed Dadgour and I am excited to see that you are interested in my content. Financial Intelligence seeks to deliver best in class educational material in subjects related to personal finance, retirement, investing and financial freedom. Our main goal is to create engaging videos to communicate somehow complex financial matters in a simple to understand manner. We advocate for long term investing strategies. Short-term trading strategies and get-rich-quick-schemes are dangerous trends that are taking the financial world by storm. Our goal to provide sound and level-headed recommendations. This channel is particularly targeted towards individuals seeking a breadth of knowledge across a variety of financial disciplines. The range of topics I plan to discuss on this channel are value investing, financial freedom, mutual funds, index investing, monetary policies, inflation and other related economic topics. Welcome to the channel and please subscribe! ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ✅ Timestamps ✅ 0:30 Intro 2:11 Reason #1: Just-in-time production 3:41 Reason #2: Long lead times and cancelled orders 5:20 Reason #3: Low profit margins of chips used in cars