Global Chip Shortage
Jun 07, 2021
Even a number of giants in some industries issued a series of shutdown statements. The chip shortage affects a wide range, LED display industry is also inevitable.According to the science and technology innovation board daily on March 29, after 8-inch wafers, TSMC's 12 inch wafers will start to rise in price in April, with an increase of about $400 (about RMB 2618) per chip.
Industry status: prices continue to rise, longer lead time
Chip shortage and price increase spread to many industries around the world, and the "domino effect" brought by it also began to appear. In addition to causing the delay of production and supply of products in related industries, it also further promoted the price rise of chips and the whole industry chain.
According to supply chain sources, Qualcomm's full range of materials delivery has been extended to more than 30 weeks and CSR Bluetooth audio chip delivery has been over 33 weeks.
Domestic, TV, notebook and other products demand is still strong, these factors directly pull the panel shipping. The price of the global LCD panel has ushered in an unprecedented rise. In addition, the epidemic has led to the sales of home-based display equipment, and the price of LCD panel has also been rising continuously. As of march2021, there is still no sign of a stable or declining LCD panel price.
In terms of supply, domestic panel manufacturers continue to release new production capacity, and Korean manufacturers' production capacity withdrawal progress directly affect global panel shipment. The industry predicts that in 2021, the actual supply area of global LCD panels will grow by less than 5% year on year, and the imbalance between supply and demand may boost panel prices further.
The source of out of stock price increase:
1. The "home economy" stimulated by the epidemic has accelerated the global digital transformation, the demand for cloud services, servers, home entertainment, etc. is rising, and the rapid development of 5g, Internet of things, artificial intelligence, etc. has promoted the market demand for semiconductor products. On the other hand, under the influence of Sino US relations, the semiconductor market exacerbated the contradiction between supply and demand. During the trump period, the US Department of Commerce suppressed "SMIC international" and other Chinese science and technology enterprises, resulting in a serious imbalance between supply and demand.
2. In the case of insufficient chip supply, it also led to the trend of hoarding. Some industry insiders said that at present, hoarding by manufacturers in all links of the industrial chain has become a general trend. The amount of hoarding for three months is normal, and the hoarding scale of some manufacturers has been close to the amount of hoarding for six months.
3. Chip capacity cannot be expanded rapidly. Neither TSMC nor Qualcomm can rapidly expand its chip production line. Because every process and every link of chip manufacturing needs high-end equipment that only a few companies in the world can produce, engineers with ultra-high skills to participate in production, and investment of billions of dollars, there is no way to achieve capacity expansion in a short time; On the other hand, blind expansion may cause overcapacity and bring huge losses.
