Will Global Chip Shortage to Last Till 2022?

The impact of the shortage of chips on cars

The global chip shortage has not improved, but it has intensified, which is triggering a butterfly effect. After Ford, Toyota, Honda, Daimler and many other car companies announced the suspension of production at some factories, the "core shortage" is still spreading around the world.

On April 26, Great Wall Motors officially issued a clarification announcement. The news reported by the media that the two major production bases in Chongqing Yongchuan and Baoding Xushui will be suspended in May and June is not true, but the announcement clearly pointed out that although it has not arrived The point of discontinuation is still affected by the global shortage of chips, and is currently actively responding to the adverse effects caused by the lack of cores.

Coincidentally, Volkswagen recently issued a warning that due to the deterioration of global chip shortages, automobile production has been hit, and the production loss in the second quarter will be greater than that in the first quarter. So far, the Volkswagen Group has announced the suspension of production at several of its factories. Last week, the Slovak plant, which mainly produces large SUVs, also faced production interruptions. Volkswagen CEO Herbert Dis said that due to the shortage of cores, Volkswagen’s production capacity in the global market has reduced production. Up to 100,000 vehicles; on the other hand, in the Chinese market, SAIC Volkswagen is also facing the impact of limited production capacity due to chip shortages.

In fact, it is not only Great Wall and SAIC Volkswagen that are affected by the shortage of chips in China. Changan, Lynk & Co, Volvo, and NIO are all affected by the shortage of chips to varying degrees.

In addition, Volvo Cars issued a postal and telecommunications announcement in March stating that Volvo Cars will adjust its production in China and the United States due to the shortage of chips; the new car maker Weilai also said in March that due to the shortage of semiconductors, it decided to start from 2021. Starting March 29, production at the Hefei Jianghuai Automobile Plant will be suspended for 5 days. Qin Lihong, co-founder and president of NIO, also said during the Shanghai Auto Show that "the core shortage problem is still very serious."

The impact of the shortage of chips on Touch Screen

The shortage of chips continues to spread, and greater challenges are about to be faced.According to related media reports, the shortage of wafers has led to the "domino" effect. Raw materials like copper clad laminates, PCB boards (supports for electronic components), packaging and testing, and chips are all facing price increases. Domestic chips are also affected, resulting in shortages and increases in supply. price.

The outside world knows that the worldwide chip shortage first started within the automotive industry area. However, during the pandemic, corporate employees, school students working and studying at home, PCs, tablets, and other electronic devices, data center server sales surged. For example, Apple iPad and Mac sales, and Nvidia data center revenue ready historical records.

In addition, Huawei's high-end chip production is restricted, and its mobile business is encountering difficulties. Mobile phone manufacturers such as OPPO, vivo, Xiaomi, Samsung, and Apple also stock up urgently just in case. At the same time, mobile phone manufacturers expand production capacity and increase mobile phone shipments in order to seize market share.

Under the influence of comprehensive factors, the requirement of the touch chip industry has surged, and there is no spare capacity. Moreover, it has a significant impact on the delivery of the car and mobile industries, which can also trigger a deeper "butterfly effect."

Just like this year, our touch screen industry is also in short supply of chip raw materials, almost in short supply. We have accumulated a lot of orders from customers because of the shortage of chips and the production cannot be carried out normally. According to a statistical report in 2020, the total demand for driver chips showed a double-digit year-on-year growth, reaching 8.07 billion. Among them, large-size display driver chips account for 70% of the total demand, and the driver chips used in LCD TV panels account for more than 40% of the total demand for large-size displays. In the small and medium-sized display driver chip market, smartphones have a market share of up to 23%.

Therefore, the current chip is still continuing,Will Global Chip Shortage to Last Till 2022?Has your industry been affected by the chip shortage?