By Penny | 29 July 2021 | 0 Comments

Chip Lead Time for the Home Appliance Industry Is Expected to Be Extended

Chip Lead Time for the Home Appliance Industry Is Expected to Be Extended
 
 
After hitting the automotive and consumer electronic industries, chip shortages have now spread to China’s huge home appliance industry, which produces two thirds of world’s home appliance electronics such as air conditioners. And now the chips are still in short supply, which causes the price increase and short supply of home appliance products. In addition, the lead time for chips in home appliance is expected to be extended.

The major markets suffering from chip shortages

 

Market Review: Due to the insufficient chip production capacity, the chip supply cannot meet the needs of demands. At the same time, many chip manufacturers received growing number of orders from home appliance companies. Therefore, the insufficient supply and increasing needs of chips causes the extension of the lead time of home appliance products.


 
Maxim Integrated Will Implement a 6% Price increase from Aug, 22, 2021
 

Maxim integrated, a major analog and mixed-signal integrated circuits company, issued an price increase notice to its distribution partners on July, 25, 2021. Due to the increase in the manufacturing cost, Maxim integrated has decided to implement a 6% price increase on all products, and it will be effective on Aug, 22, 2021.

 


 

 

Defence Chip Price Has Risen by More Than 50% This Year

 

Since 2021, the price of defence IPC chips has been increasing substantially. So far, it has increased by more than 50%. The price for many defence chips has been growing greatly including NVR, DVR, etc from 2020.

 


Market Review: with the outbreak of pandemic, the stay-at-home demand for home appliance, smart phones and computers has been increased dramatically. However, the chips manufacturers cannot catch up with sufficient production capacity. And many chips are produced to meet the demand from these stay-at-home products, which led to the decreasing chip supply for defence and automotive products. It is expected that the defence chip shortage will last for a certain period of time.



 
Driver IC Shortage Is Expected to Persist to the End of 2021
 

The display driver IC is one of the crucial control components for flat-panels, and is mainly used for sending driver signals and data to the display panel. Due to the growing of stay-at-home demand, the shortage of display driver ICs is expected to persist through the end of this year, according to the market researcher TrendForce Corp.

 
 
Market Review: Demand for display driver ICs is to grow 7.4 percent year-on-year this year and outpacing growth in supply of 2.5 percent as chipmakers allocated some 8-inch wafer capacity for higher-margin chips.
 

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