re: Chip Shortage - What You Haven’t Heard

quote:

---

Looking back, I know all the hate for FDR, and rightfully so, but AT LEAST he was smart enough to ramp up production and manufacturing at home for the storm that he knew was coming soon.

---

I only recall one, maybe two, big defense plants starting construction before Dec 7th.

Many more after of course.

It should be noted however that companies like GM, Ford and Chrysler were not only vertically integrated, they were able to shift the massive production lines they already had over to war work.

As an example, GM subsidiaries like Saginaw, Muncie, Delco, AC and others made the steering boxes, transmissions, alternators, spark plugs and such for GM and also other manufacturers.

In todays environment, manufacturers are cautious about adding capacity for what may be a short term situation. Why spend a couple billion building a chip factory to only have the chinese undercut you on price when things stabilize?