Friday, August 12, 2022

Fleet Truck Friday: Geopolitical Friction Exposes Vulnerability of Future Microprocessor Inventories


The 107th State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich. 🎙Today's topics include: - The fact that more than half of the global production of microprocessor chips are concentrated in two countries — Taiwan and South Korea —which is a growing concern because people fear that a future China-Taiwan conflict could lead to a catastrophic worldwide semiconductor shortage. - A U.S. Army War College paper recommends a “scorched earth” strategy that calls for the U.S and Taiwan to threaten to destroy the facilities of the Taiwan Semiconductor Manufacturing Co. if China threatens to invade Taiwan. - For the first half of calendar-year 2022, the microchip shortage did improve but it didn’t improve as much as the auto industry expected. - Pat Gelsinger, the CEO of Intel, expects the shortage of semiconductors to continue until calendar-year 2024, which puts us into the 2025 model-year.

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