back to article Why is the little guy getting rinsed for hardware? Because top OEMs had to spend 25% more on chips in 2021

Semiconductor supply shortages last year led to the world's top original equipment manufacturers (OEMs) spending 25.2 per cent more on chips than the previous year, with Apple and Samsung heading up the list. The figures from research firm Gartner point out that the semiconductor manufacturing industry actually increased chip …

  1. Anonymous Coward
    Anonymous Coward

    At least Sony didn't

    I mean, has anyone seen a Playstation 5?

    1. badflorist

      Re: At least Sony didn't

      Has anyone seen a pay increase?

      Strange how the hard times for the common folk are always golden opportunities for the absurdly rich. Someone might stop to ask what exactly is this "shortage" of?

      Here's a valid questions I do not know the answer to: If my company tells another company to buy up all of a product I need and not to sell it to me immediately, is my company suffering "shortages" and is it legal?

      1. doublelayer Silver badge

        Re: At least Sony didn't

        Those are unusual questions, but here are answers.

        "If my company tells another company to buy up all of a product I need and not to sell it to me immediately,"

        Definitional thing first. Are they doing this because they're building the stuff they just bought to make a product, in which case you can't have it because they're not done making it (option A), or are they arbitraging the component by planning to sell it unmodified to someone else (option B)?

        "is my company suffering 'shortages'"

        Option A: probably, or they're preparing for when they will. Option B: no, they're building the arbitrage on them.

        "and is it legal?"

        Yes. You are allowed to buy stuff and be slow about using it or not use it at all.

        1. elsergiovolador Silver badge

          Re: At least Sony didn't

          Well, it's not legal when it comes to football tickets. So it would be interesting to see such law extended to chips - that is corporations would not be allowed to buy say 30% more than they need and any unused chips within a certain time period would have to be returned.

          I am watching certain chips and as soon any quantity shows up it is unavailable. Then you can buy any quantity of those chips from China, but at 10x the price...

          1. doublelayer Silver badge

            Re: At least Sony didn't

            You could try it, but most likely, the people doing the arbitrage would move to a country where it remains legal, as it's pervasive in most markets. If you made it illegal in the EU, arbitragers could still sell from China. If you somehow managed to have China make it illegal, they could all decamp to India and start buying from there. You could theoretically ban buying from one of these people, but it would be a tricky law to write, let alone pass.

        2. richdin

          Re: At least Sony didn't

          The great difference between "build to order" aka Dell and "build to plan" aka IBM

      2. John Brown (no body) Silver badge

        Re: At least Sony didn't

        "Has anyone seen a pay increase?"

        My own employer has been keeping our moral up be telling us how massively turnover and profits have grown over the last couple of years, beating all previous records. Pay rises? Yeah, sort of. Below inflation level, ie a real terms pay cut. Of course, the fuel costs for the boss' helicopter have risen a bit, so that's all good then!

      3. rcxb1 Bronze badge

        Re: At least Sony didn't

        > Has anyone seen a pay increase?

        Yes. Entry-level wages are up all around here, and usually come with a big-bonus for new hires due to the worker shortage.

        https://tradingeconomics.com/germany/minimum-wages

        https://www.reuters.com/business/amazon-hire-125000-workers-pay-hourly-wages-18-2021-09-14/

  2. elsergiovolador Silver badge

    Dumpster diving

    In some corporations you have people delegated to buy any kind of electronic devices that might have a chance of sporting certain chips. Then they order as much as they can and desolder needed parts. The rest is then disposed.

    So you have somewhat used parts going into new equipment and pile of electronic waste.

    Somehow the green warriors are not interested in that.

  3. Anonymous Coward
    Anonymous Coward

    Hoirder

    Guess it's the right time to sell my hoard of 1980s unused TTL chips? 150 different types, offers?

  4. This post has been deleted by a moderator

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