The chip shortage is so bad companies are ripping them out of washing machines

[tonyget]

The chip shortage is so bad companies are ripping them out of washing machines

ASML chief executive Peter Wennink said that large industrial companies are buying washing machines in order to take the chips out and repurpose them.

www.protocol.com

Anyone who has tried to buy a car or home appliance lately knows the chip shortage is still pretty bad. But it has become so dire that large industrial companies are buying washing machines in order to rip out the chips and repurpose them, according to ASML CEO Peter Wennink.

“Now, we could say that’s an anecdote,” he said on the company’s earnings call Wednesday. “But to be honest, it happens everywhere — it is 15-, 20-, 25-year-old semiconductor technology that is now being used everywhere.”

Wennink said that internet of things is likely driving the demand for these older chips found inside home appliances.

The Dutch company makes lithography tools that chip giants such as TSMC, Intel, and Samsung use to manufacture their most advanced processors. Wennink has a unique view of the semiconductor supply issues since ASML deals with a wide range of businesses around the world. And business is good: It reported a net profit of €695.3 million ($754.3 million) on sales of €3.53 billion.

ASML itself is struggling to build all of the tools its customers want, and is trying to figure out how to produce just over 700 lithography tools in total every year. Wennink said in the earnings call that he would be happy if he could fulfill 60% of the orders ASML has received this year. According to Bernstein analyst Mark Li, it is likely ASML will struggle to fulfill demand through 2023.

 

[hist78]

The chip shortage is so bad companies are ripping them out of washing machines

ASML chief executive Peter Wennink said that large industrial companies are buying washing machines in order to take the chips out and repurpose them.

www.protocol.com

Anyone who has tried to buy a car or home appliance lately knows the chip shortage is still pretty bad. But it has become so dire that large industrial companies are buying washing machines in order to rip out the chips and repurpose them, according to ASML CEO Peter Wennink.

“Now, we could say that’s an anecdote,” he said on the company’s earnings call Wednesday. “But to be honest, it happens everywhere — it is 15-, 20-, 25-year-old semiconductor technology that is now being used everywhere.”

Wennink said that internet of things is likely driving the demand for these older chips found inside home appliances.

The Dutch company makes lithography tools that chip giants such as TSMC, Intel, and Samsung use to manufacture their most advanced processors. Wennink has a unique view of the semiconductor supply issues since ASML deals with a wide range of businesses around the world. And business is good: It reported a net profit of €695.3 million ($754.3 million) on sales of €3.53 billion.

ASML itself is struggling to build all of the tools its customers want, and is trying to figure out how to produce just over 700 lithography tools in total every year. Wennink said in the earnings call that he would be happy if he could fulfill 60% of the orders ASML has received this year. According to Bernstein analyst Mark Li, it is likely ASML will struggle to fulfill demand through 2023.

Do we have a way to find out what exactly the parts some companies are looking for from the washing machine? It can be misleading in some situations.

Traditionally manufacturers often salvage usable components from old finished products or new but defect products for various purposes. It may be due to the cost consideration or the parts have been discontinued in production or something else.

 

[Daniel Nenni]

Nice headline but it does not happen "everywhere". I'm sure people are repurposing chips from used electronic devices more than before for spare parts but putting used chips in new devices is, at a minimum, not ethical, and at a maximum illegal.

To me this is just another example of hyping the chip shortage for personal benefit. ASML thrives on the chip shortage narrative and will keep beating that drum until it falls apart, absolutely.

 

[tonyget]

I'm sure people are repurposing chips from used electronic devices more than before for spare parts but putting used chips in new devices is, at a minimum, not ethical, and at a maximum illegal.

Ha？Recycling used stuff is deemed environmental friendly and encouraged by many governments，it is the global trend now. Some big companies even demand suppliers a certain percentage of materials much be recycled.

 

[Jozo035]

Wennink said that internet of things is likely driving the demand for these older chips found inside home appliances.

You need iot capable processor to support iot functionality. And it is very unlikely, that old processor had this functionality...

They would need additional "connectivity chipset"... which usually contains few CPU cores...

For example ESP32 used in BT/WiFi sip.

 

[mgoldsmith1979]

You need iot capable processor to support iot functionality. And it is very unlikely, that old processor had this functionality...
They would need additional "connectivity chipset"... which usually contains few CPU cores...
For example ESP32 used in BT/WiFi sip.

Yes, though certainly there has been an uptick in "not totally useful" electronics into home appliances, and there may be more value in the scrap heap now than before. Alexa in your microwave or wall clock? Needs a BT/WiFi, same with smart thermostats etc. Dishwashers or laundry with multiple touch-sensitive buttons and dials and etc - there's a uController in there doing something, that might be more useful elsewhere? I have an old Kenmore laundry set that I've been able to repair myself with a handful of metal and plastic bits from resellers, but it doesn't play a cute musical interlude when the wash finishes like my neighbor's LG unit does :/

 

[Daniel Nenni]

Very true. We just bought a new Electrolux washer/dryer and the options were ridiculous. Even though we skipped the WiFi enabled options we will still only use a fraction of the settings available. It really is out of control and yes it plays music to let you know the status. Better than a buzzer I guess.

 

[jms_embedded]

but it doesn't play a cute musical interlude when the wash finishes like my neighbor's LG unit does :/

We got one of those a few weeks ago. It's cute for the first few times. Now it's just annoying... but even if I could change it, I don't know what I would want. I guess it has to be annoying to be noticeable.