Affected by US sanctions on Chinese high technology. Recently, the supply of chips in the Chinese mainland continues to be tight, and more and more semiconductor companies have joined the price hike. China Resources Microelectronics (CRM) recently sent a price adjustment letter to its customers, causing industry insiders to worry about the prospects of China’s semiconductor industry.
China Resources Microelectronics Co., the mainland’s largest power semiconductor company, announced Wednesday that it will raise prices by 10 percent starting from New Year’s Day. The personage inside course of study thinks, China Resources micro regards industry leading enterprise, this increase price will cause semiconductor product to rise a new round tide.
Since the second half of 2020, due to the continuous shortage of 8-inch wafer plant capacity, power management IC, power semiconductor and other supply has exceeded the demand and started the price rise wave. Subsequently, chip testing plant, automotive electronics enterprises, chip design companies have raised the price accordingly.
Financial scholars commander on Friday (8) to accept the interview, the chip upstream enterprise product price increases, for its upstream and downstream enterprises all no good: “for the increase in the price of the chip industry, IT can be said that production of these enterprises such as mobile phones, tablets, IT industry, such as using chip as the core component of intelligent manufacturing is, in China, absolutely no less than one trillion yuan output value of the scale.”
The semiconductor products are marked up by ten to thirty percent
In addition to China Resources Micro, new jieneng, Huiding Technology, Shilan Micro, Fuman Electronics and other semiconductor companies have issued price increases notice letters. The price increases ranged from 10% to 30%.
According to industry insiders, the price rise of China’s semiconductor products is related to the US government’s embargo and its own declining production, which will directly affect China’s exports of electronic products.
Liu Li, head of the Shenzhen-based Qiangmei Trading Company, told the broadcaster: “Recently we have received notices from semiconductor manufacturers that some products and materials will increase their prices. We anticipate future price increases for these products as well.”
Last month Germany’s Volkswagen faced a full production halt at its factories in China because of tight chip supplies.
The price increase affects the competitiveness of China’s manufacturing industry both at home and abroad
Is responsible for the export trade of liu li said, domestic product prices to rise, will affect the competitiveness of the Chinese market and international market: “competitiveness will drop, because take a lot of the international market by low price before, but now the situation in China products are not competitive in the international market in the future, will also affect the export, and have a negative impact on China’s semiconductor development.”
In fact, China’s semiconductor and chip industries still lag behind those of the United States and other Western societies. Due to the sanctions imposed by the United States, China’s total chip imports have surpassed oil imports, exceeding $300 billion in 2019, becoming the number one commodity import. So-called chip factories sprang up all over China, eventually succumbing to a lack of technical support.
Zha Jianguo, a scholar in Beijing, said chips are a key part of the digital economy. “China is far behind in the production of chips, and of course now the US and Western sanctions, the Chinese government or companies are investing heavily from a market point of view. More investment will speed up the research and production process.”
Li Shaohua, deputy secretary general of China Association of Automobile Manufacturers and minister of industry development, said in an interview recently, “The overlay of multiple factors has led to the contradiction between supply and demand of chips in this period of time. Some companies’ production may be affected in the first quarter of this year due to chip supply shortages. “However, for the year as a whole, the impact of the chip shortage will not be significant and it is difficult to make quantitative estimates.”