Chip shortages are pushing up technology prices—starting with TV
TV, laptop and During this period, tablet computers are in great demand Covid-19 pandemic, As a person Work and study with Zoom, Socialize and meet via Skype Netflix Reduce lock-in depression. However, all this extra screen time also prompted the start of a semiconductor supply tightening, which caused the price of certain gadgets to soar (starting with TVs).
According to data from a market research company, the price of large TVs has risen by about 30% over last summer in recent months. NPD. This growth is a direct result of the current chip crisis, and emphasizes that solving the problem is more complicated than simply increasing production. It may be only a matter of time before other gadgets (laptops, tablets and VR headsets) using the same circuit experience similar sticker vibrations.
Some manufacturers have heralded potential price increases. Taiwanese computer manufacturer Asustek, Say in The March quarterly earnings conference call stated that the shortage of parts will mean “further upstream prices,” which may affect consumers.
The prices of these components “unfortunately must have gone up,” said Michael Hurlston, the company’s chief executive officer. Synapse, A company that sells integrated circuits used to control touch screen displays to consumer electronics manufacturers. “In some cases, we will pass on prices to customers, and we heard that they are passing on these price increases to customers.”
Although the entire semiconductor industry is feeling tight on supply, these display-bound integrated circuits pose a special challenge. Since they are not particularly advanced, the circuits are usually manufactured after the most advanced chip factories. As chip makers focus on building more advanced manufacturing plants that can produce more valuable components, there is little incentive to invest in the capacity of older facilities. Even if demand surges, it is impossible to eliminate more of these products.
Various devices have been affected by the shortage of chips.Sony Tell the analyst this week By 2022, due to contraction, PlayStation 5 will still be in short supply. The company that acts as an electronic component broker said that the prices of certain components have risen by several orders of magnitude. The voltage regulator used in countless products of 50 cents usually sells for as much as $70. But at the consumer level, due to factory restrictions, products that need to display integrated circuits are the first and most affected.
“The word I heard recently is that the inventory has been exhausted,” said Peggy Carrieres, the company’s vice president. Video network, Supplier of electronic components. “Therefore, these new prices will affect the consumption of retail stores and consumers.”
Although it is a type of integrated circuit, its impact is widespread. “Any product with a built-in screen will be affected by these price increases,” he said. Paul Cannon, Senior Research Director of Consumer Devices, Analytica Omdia.include He said that PC manufacturers can sell equipment at the same price, for example, by reducing memory, thus avoiding this growth.
E-retailer unit price Paul Collas, the company’s vice president of products, said the drought has been affected by parts drought. He claimed that Monoprice will not raise prices, but may have to cancel sales and other promotions. “In some cases, we have also seen the need for more investment in advance payments to partners to ensure access to long lead parts to support our supply needs.”
The fusion of various factors has led to an unprecedented chip drought. This pandemic has triggered a surge in demand for home electronics and cloud services, and the economic slowdown has also caused some industries to seriously misjudge how demand will fall.
In addition to traditional consumer technology, the impact is also being felt. In particular, automakers were caught off guard after anticipating a decline in sales.After preemptively canceling orders for semiconductor components, many automakers have already Must stop production While they waited for supplies to arrive. Larger supply chain disruptions have also been hurt, including a fire in March when the Japanese factory closed, which produces various semiconductor components, including display integrated circuits.