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The Global Chip Supply Chain is Strained

September 17, 2021

Latest company news about The Global Chip Supply Chain is Strained

Since the second half of last year, the globally integrated circuit manufacturing capacity has continued to be strained, and the problem of "chip shortage" has appeared in various industries, which has caused a certain impact on the development of the global industry.


There are two main reasons. One is that the global outbreak has caused manufacturing companies to generally slow down their capacity expansion plans, which has caused a mismatch between capacity supply and demand; the second is that the epidemic continues to repeat, causing some countries and regions to shut down some chip production lines, which caused a decline in production, making some chips off for the emergence of the phenomenon.


Especially car manufacturers that rely heavily on chip factories. The epidemic has caused a global shortage of chips, which has caused a reduction of 5.85 million vehicles in production, of which 1.122 million vehicles have been reduced in the Chinese market. It is estimated that in 2021, global car production will be reduced by more than 7 million, and this effect will continue until next spring.


The chip shortage has the greatest impact on the automotive industry. The shortages that lasted for several months have caused many well-known car companies to fall into the dilemma of suspension of work and production, and other uncertain factors have been superimposed, and car sales have been significantly affected.


According to consulting firm AlixPartners, the chip shortage is expected to cause US$110 billion in losses to the global automotive industry in 2021.


The price of cars price began to rise. Due to the continuation of the epidemic, the shortage of chips, the price increase of raw materials and other reasons, the Japanese legal entities of German auto giant Volkswagen and Audi respectively announced that most of the new cars sold in Japan will increase prices from October 1. According to data from the American Cox Motor Company, the average price of new cars in the United States has reached 42,000 US dollars, and the average price of used cars has also soared to about 25,000 US dollars.

latest company news about The Global Chip Supply Chain is Strained  0

Multiple influences are gradually emerging


The preliminary research report for the second quarter of 2021 released by LightCounting, an optical communications market research organization, on August 25 shows that component shortages continue to pose challenges to many companies in the industry.


Friedrich, founder and CEO of Adago, said that this is definitely a challenge for small electronics manufacturers, creators and inventors. Aduinabio, CEO of Fabio Violante, said that as a manufacturer of electronic equipment, it is very dependent on the supply of various components such as semiconductors.


In the first half of this year, many manufacturers expect that the chip shortage may disappear in the second half of this year, but at present, from chip suppliers to automakers and other chip users, it is generally believed that the shortage of chip supply will continue for some time.


Recently the cost is rising gradually, chip shortage in various industries, and the price is rising. I would like to remind you that If you need any fiber optics product, like industrial network switch, POE network switch, fiber media converter, SFP transceiver, etc, please contact OLYCOM anytime.

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