The chip crisis
11 Jun 2021 -
Sine 4th June in 2021, The price for IC has shot up 40% again. Why are the raw materials continue increased skyrocketing this year?
To summarize are below points:
1. The started with a COVID-19 outbreak of global, all of the manufacturer had closed and stopped to work for a lone time. After the resumption of work, the market is short of supply, leading to rise of all kinds of raw materials.
2. Most of suppliers are realize this condition and then begin to purchase mass IC as stockpile for avoid facing shortage of IC. The arrival of the 5G market has intensified the demand for IC.
3. The Federal Reserve printed a large amount of US dollars for COVID-19 relief, infrastructure construction and citizen relief funds, which led to inflation, the US dollar goes down and the increase of materials.
4. Some political sanctions between countries also have a great impact on chips.
According to report, on 6th Jun the IC from Germany sold 3.5rmb per unit last year, but the price has increased to 16.5rmb per unit this year, the range increased 5 multiple.
Due to the COVID-19 and some national policy issues, the chip shortage has affected 169 industries, and now every company in the world is facing the problem of "cannot buy" and "cannot afford" of chips.
Experts estimate that the chip shortage will perplex the world for at least another year, even for a long time. With the recurrence of the COVID-19, especially in East and Southeast Asia, the shortage of chips will become more serious, and its spread will become more widespread.
Time is money. The good advice is purchase more quantity asap if you interested our products.
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