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Processer chip constraints

Trandall

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Just wondering if anyone has heard anything about production delays concerning processer chip delays? I've read several articles about about general shortages in chip manufacturing affecting auto manufacturing, both Ford and VW have had to reduce production forecast for 2021 due to chip constraints.
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skyote

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Do you have any reference articles/links you can share?

I haven't heard this, but it doesn't sound too surprising. We know that Rivian is "supply constrained" into the foreseeable future, and my assumption was batteries...
 

electruck

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Tons of recent articles, Google "auto chip shortage". No specific comment about or by Rivian so far.
 

skyote

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Just read the NYT article about it, and here's a few thoughts:

  • Automakers incorrectly expected lower demand & the chip suppliers pivoted to higher demand chips
  • This will definitely affect the higher volume auto companies
  • Rivian knows how many vehicles it needs to produce due to preorders, and likely has supply chain orders/contracts nailed down, especially in light of COVID
  • Rivian was "down" for a couple months on the factory, yet the vehicles were delayed for 6 months. Maybe they already accounted for additional supply chain delay?
My guess is that it will affect Rivian less than traditional auto or possibly not at all.
 
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Trandall

Trandall

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electruck

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I'm with skyote on this and would speculate that perhaps this won't impact Rivian as much as existing manufacturers. Most of these articles reference sharp cuts in existing orders from the auto manufacturers due to expectations of reduced demand during the pandemic resulting in chip production shifting to support growth in other sectors. In a sense, these companies have "stepped to the back of the line" for chip production capacity. Rivian however was not in series production so they had no chip production to reduce thus they should largely have been able to "keep their spot in line" per existing contracts to ramp up delivery of their chips. As skyote also pointed out, the Rivian shutdown and production delay were not 1:1. Aside from their stated anticipation of another month long shut down, some of that additional delay may have been buffer against supply chain complications associated with covid.

Again, pure speculation here. The reality is there are no guarantees of anything as covid is still not under control.
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