Global chip shortage spreads! As chip manufacturers crowd out low-margin products, chips used in household appliances are bearing the brunt of the growing shortage problem, the production chain has been greatly affected. Although the mainland is about to enter the May Day long holiday shopping season, but it is difficult to see a comprehensive price split promotions, such as the second quarter retail prices of TV sets have not fallen but increased, the average price increase of more than 10%, reflecting the wave of chip price increases have spread to the downstream market. Investment bank Goldman Sachs has warned that the global shortage of chips will have an impact on 169 industries.
Comprehensive foreign media reports, as early as during the epidemic, “home economy” so that people buy a large number of electronic products related to monitors, speakers and home appliances and other products. Take TCL Electronics (01070), which sells televisions, for example, its brand TV sales last year rose 15.9% year-on-year to 23.93 million units, exceeding its annual sales target and hitting a record high, especially in overseas markets where annual sales rose 27.2%, and all regions showed strong growth.
In view of the chip is widely used in a large number of daily electronic products, chip manufacturers to increase the supply can be described as a way out, even the world’s third largest chip foundry U.S. core CEO Tom Caulfield also pointed out earlier, the current plant utilization rate has not only exceeded 100%, but also to increase production capacity at the fastest speed, and plans to invest $1.4 billion this year (about 10.92 billion Hong Kong dollars) to expand production.
The cause of the current “core” shortage can be described as a disaster, the epidemic has interrupted the chip industry chain, followed by rising friction between the United States and China, deepening long-term concerns about chip shortages, prompting more companies to join the hoarding chip army, so that more production can not make up for the immediate demand.
In the chip additional inventory emergency, home appliances also suffer. Credit Suisse forecasts that this chain reaction will affect the mass of appliances. Industry insiders also said that the chip for home appliances are simpler and less profitable, chip makers will give priority to the allocation of capacity to high-profit products. Taiwan’s major home appliance manufacturers sound treasure has confessed that, due to the low gross profit of home appliances with chips and drivers, production capacity is indeed crowded out, and supply tension has increased, the current washing machine, refrigerator more severe. If the chip shortage continues, the supply in June may be further affected. In other words, the peak sales season of summer home appliances may face challenges, and the second half of the year will depend on the weather and chip supply.
A small TV maker in Seoul revealed that unless pay higher prices, it is difficult to obtain key components, and now have no choice but to raise the selling price of TV sets to reflect the rising cost of raw materials. Another business TECO also pointed out that its LCD TV retail prices have been raised, is expected to start in May to increase the price of air conditioners.
In fact, the world’s enterprises to grab the chip has caused a shortage of tide from the upper, middle and lower reaches of the spread. Taiwan’s microcontroller (MCU) manufacturers have warned that the second half of this year may be early open to accept orders for the year after, meaning that the chip shortage fears delayed to 2023. In other words, Goldman Sachs report speculation more reference, the bank warned that the global shortage of chips on steel products, mixing concrete production machines, as well as air conditioners, refrigerators, and even breweries will also be affected by the chip crisis.
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