Monday, May 10, 2021

Strategic Decisions

Where are the computers in your car or truck made? And what happens when that foreign power decides to stop shipping?

Strategery is hard.

13 comments:

libertyman said...

Wow, that is alot of inventory. And yes, we are being held hostage.

Eagle said...

That's not scary.

The fact that military contractors can't get components to build new systems for the US military because those components (processors, memory, communication/networking chips, etc) must be PROVEN to be "secure"...

... THAT'S scary. It's one thing for a truck to die on the highway, and quite another for a US fighter jet on a strategic mission to be commanded - by a foreign power - to fall from the sky.

libertyman said...

Anyone from the Pentagon ever give a thought to critical supply chains, or now, a backup plan? Making a chip foundry is a huge investment, and where will we get the people to run them? Is there a US manufacturer of chips any more? We used to make the worlds wafer steppers, but now that is long gone. (See the company GCA, for example, out of business years ago).
Now that a pipeline has been disrupted, we on the east coast can really thank Biden for shutting down a supplement like Keystone, right? Are politicians so busy taking money from China that they can't understand this?

R.K. Brumbelow said...

No worse than fuel pipelines being controlled by computers that have public internet connections …

Murphy(AZ) said...

I read an article earlier today about how General Motors is developing a new military squad transport vehicle. Did I mention it will be an ELECTRIC vehicle?

Now, I realize I'm no expert on this, but one thought jumped to my mind right off: ARE Y'ALL ATE-UP WITH THE DUMBASSES???

Where ya gonna charge that electric pig?

Fredrick said...

Bank build parts becuase you will have capacity issues in the future? Make payments to suppliers to ensure capacity is available in the future when capacity constraints due to mandated Covid shutdowns have eliminated what inventory builds you might have made? Yeah, William Clay and James Farley should be congradulated on their achievement. I mean all that EV and Autonomous vehicle focus and first and foremost "Woke"! Just wait until the fleet customers can't get a PCM for their 6yo commercial vehicle because that chip design changed and the chip maker stopped production 90 days after you stopped using them in you fleet.(Been there, done that; whatched my solution get outsourced because it didn't make enough money.)

Did you notice you don't hear about which particular chip this is or that this is an issue with Toyota?

The Neon Madman said...

It is not just chips. Most bare circuit boards are made in China or other less environmentally regulated countries. A high percentage of the discrete components also come from the East. Electronic circuit board assemblies might be built in the USA, but the majority of what's on them comes from offshore.

Dan said...

Micron/Intel and others are still making lots if product TSMC is pretty much the biggest by volume and they are building plants in Ameriva now.

Old NFO said...

The chip plant that burned last year in Japan is the one that manufactures the majority of the missing chips. That plant has NOT been rebuilt... And it's not just chipsets, any non-US manufactured vehicles are 30-90 days out on simple parts for repairs due to JIT shipping issues and WuFlu.

Toirdhealbheach Beucail said...

I read an article today stating that some automotive manufacturers are reverting to non-chip options to be able to continue to build cars.

Yes, Pentagon, this is why supply chains matter.

Maniac said...

This is all proof that China thinks in the long term. They have us by the short ones.

And yeah, with the shortage of tanker drivers and the pipeline hacking, it could be a long summer.

Unknown said...

One issue at DOD is the push for COTS (Commercial Off the Shelf) components and systems on the support side. This is were the system may break down.

The other issue is once something is in the supply chain, it is very hard to replace it. The parts to build to build them become more and more difficult to acquire. In my past life, the USN was still using a system we built in the 1990's for a specific use. We had re-designed the unit for a commercial customer for half the price and ease of use but the Navy wasn't interested. There was no money in their budget for verification testing and besides it worked well for their use. It got to the point that it cost more to fix an old unit than to build the new one,

Gerry

Eric Wilner said...

Comparative advantage is fine in its proper context, but when the manufacturing advantage is held by an unfriendly foreign power with slave labor and no environmental constraints, other factors really do need to be taken into consideration.