Shortage hitting Ag machinery production
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Started by wglassfo - May 19, 2021, 12:07 p.m.

We have a new combine on order for this yr and a new planter on order for next yr

Our dealer tells us delivery is maybe yes maybe no

1st it was a steel shortage and now it is a chip shortage. Anybody that did not have their order in by Jan 2021 most likely will not get a machine that needs chips. Our order will not be built until about now for the combine so it looks like we are likely out of luck. The machines on the lots are going fast and just like cars, used machinery such as tractors, sprayers, combines etc that need chips will go up in price. People are already starting to pick over the newer used equipment

I wonder how long this chips shortage will last

How long do we run an old machine that wasn't dependable, which was the reason we got rid of it

Our old combine is gone but not for sale as the dealer needs some thing on hand for break downs. Maybe we will get our old combine back for at least another season

I wonder what harm the chip shortage will do to the world economy. Is this what you call a black swan event???

Just thought I would mention the chips are not affecting, just car production but a wide swath of consumer goods

Have you looked at your washer and dryer in the laundry room. Look at all the buttons and lights. Chips make those lights start and stop. Just an example


Comments
By metmike - May 19, 2021, 2:28 p.m.
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Wayne,

I promoted this wonderful topic to the trading forum.

By metmike - May 19, 2021, 2:32 p.m.
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Thanks so much for bringing this great topic up Wayne.

I was unaware of this issue. That's why I need you guys to ...............CHIP in (-:

Gartner Says Global Chip Shortage Expected to Persist Until Second Quarter of 2022

https://www.gartner.com/en/newsroom/press-releases/2021-05-12-gartner-says-global-chip-shortage-expected-to-persist-until-second-quarter-of-2022

The worldwide semiconductor shortage will persist through 2021, and is expected to recover to normal levels by the second quarter of 2022, according to Gartner, Inc.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices,” said Kanishka Chauhan, principal research analyst at Gartner.

The chip shortage started primarily with devices, such as power management, display devices and microcontrollers, fabricated on legacy nodes at 8-inch foundry fabs, which have a limited supply. The shortage has now extended to other devices, and there are capacity constraints and shortages for substrates, wire bonding, passives, materials, and testing, all of which are parts of the supply chain beyond chip fabs. These are highly commoditized industries with minimal flexibility/capacity to invest aggressively on a short notice.