A model shows a small flash memory chip with a capacity of 8GB at the opening ceremony of COMPUTEX 2006 in Taipei, Taiwan, June 6, 2006.
As the global shortage of semiconductors intensifies, consumers are facing rising prices and shortages of household goods, and even ordinary household appliances are being hit hard. China’s Home appliance makers are certainly under great pressure.
According to Reuters 29, the “white goods giant” (white goods refers to household appliances used for living and doing household chores, referred to as white goods.) According to Reuters 29, the “white goods giant” (white goods refers to household appliances for living and household use, referred to as white goods), the world’s large household appliance manufacturers – the United States Whirlpool Group (Whirlpool) global vice president and president of Whirlpool (China) Co. tightening, and now even appliance makers can’t meet demand.
“Exports from China to Europe and the U.S. have fallen by as much as 25 percent in some months.” Ai told Reuters’ bureau in Shanghai.
“It’s an absolute storm,” Ai told reporters on the sidelines of the China Home Appliance and Consumer Electronics Expo (Shanghai Home Appliance Expo), “on the one hand we have to meet domestic demand for home appliances, and on the other hand we are facing an explosion of export orders. As far as the chip situation is concerned, it is inevitable for those of us in China”.
Whirlpool has been struggling to ensure it has enough microcontrollers, the simple processors that power more than half of its products, including microwave ovens, refrigerators and washing machines.
The chip shortage has affected a range of high-end suppliers around the world, including Qualcomm Inc, the world’s largest radio communications technology research and development company, and the powerful Apple Inc, Samsung, Ford Motor, General Motors and others have also been affected.
Every company that uses chips is panic buying to shore up its inventory, catching not only Whirlpool, but also other appliance makers off guard.
Hangzhou Robam Appliances Co Ltd, a Chinese white goods maker with more than 26,000 employees, had to delay the release of a new high-end stove for four months because it couldn’t source enough microcontrollers.
“Most of our products are already optimized for smart use, so we need a lot of chips.” said the marketing director of Boss Appliances. He added that the company found it easier to source chips from China than overseas, prompting it to reassess future supplies.
White goods companies’ profits are being further squeezed by the chip shortage.
The director of the planning department at China’s Sichuan Changhong Electric Co. said profits have long been low because of the long replacement cycle for home appliances, combined with fierce competition and a slowing real estate market. Now supply chain costs have increased again because of shortages of core components and chips.
Recent Comments