Washing machines are the new toilet paper.

Titoma > Electronics Updates > Washing machines are the new toilet paper.

Washing machines are the new toilet paper.

 

A recent report from asml mentions that a major manufacturing conglomerate is buying up washing machines to salvage the MCUs because of the global shortage.

 

Insiders at the Dutch EUV equipment maker have declined to name the company, but rumors are pointing to a couple of big names in the automotive/industrial industry.

 

This makes sense because of the type of chip and circuitry used in washing machines – operating under strong mechanical vibrations and swinging temperature changes.

 

This highlights the desperation in the industry and the lengths some are willing to go.

 

At Titoma Towers, we have been opting for the GigaDevice GD32 instead of the stm32, because of the ridiculous prices or 52-week lead time.

 

 

washing machines are the new toilet paper

 

As many companies went after the GD32 series, its LT and pricing were starting to look much like ST’s, but recently these have actually come down quite a bit, as Gigadevices is quickly expanding its production in China.

 

Something like a GD32 embedded microprocessor does not need the latest IC manufacturing technology, that can only be achieved by ASMLs EUV lithography equipment.

 

And so these mcu are not impacted by the ban on selling such equipment to China.

 

Companies like Intel are negotiating billions in subsidies to build new IC fabs in the US, Europe, Japan and India.

But

a. building these factories there will take another 2 to 3 years.

b. nearly all the EUV equipment for the coming 3 years is already sold out to incumbents like TSMC.

 

Meanwhile as the Tesla controlled experiment in building mega factories has shown, China is much much faster at getting state off the art plants up and running than the US and Germany.

 

An autocracy does not worry about pesky environmental regulations and protesters.

 

China is quickly ramping up IC manufacturing capacity in the older, larger node technologies, used to make the more pedestrian ICs, a lot of which are also needed in cars.

 

Western firms are loath to invest in capacity for these older IC’s because the ROI on outdated technology is low.

 

But China heavily subsidizes any and all IC technology, so in my view they will soon dominate the bottom of the market.

 

Have you heard any rumors of which company is salvaging from washing machines?

 

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