TechHow the Global chip shortage will effect the smartphone market?

How the Global chip shortage will effect the smartphone market?

Global chip shortage
Image courtesy: The Atlantic

From the past few days, electronic equipments manufacturers are under stress because of the global chip shortage. With Corona vaccine beginning to roll out to the masses, OEMs are getting worried about consumers demands that will bounce back and the manufacturers need to ramp up their productions, so that they don’t fall back in terms of sales post pandemic. Industry experts believe there are many reasons for this

1. Bulk buying by U.S-sanctions hit Chinese tech giant Huawei Technologies.

2. A fire at AKM (Asahi Kasei Microsystems) semiconductor plant in Japan. AKM supplies high end integrated circuits to companies like Sony, Canon, etc. AKM has said that it will take them around 6 months to 1 year to start production lines again.

3. Covid-19 lockdown in Southeast Asia.

4. Strike in France.

TV’s to smartphone makers to car makers, there’s an alarming bells for all about the global shortage of chips causing them manufacturing delays.

“For the whole electronics industry, we’ve been experiencing a shortage of components,” said Donny Zhang, CEO of Shenzhen-based sourcing company Sand and Wave. Donny said, they faced delays in obtaining a microcontroller unit that was key to a smart headphone product they were working on.

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The automotive industry in China, which flagged the issue earlier this month, is anticipating production at some Chinese carmakers to be affected in the first quarter of next year, according to a senior industry association official.

A Japanese electronics component supplier said he’s seeing shortage of WiFi and Bluetooth chips, and was expecting delays of more than 10 weeks. Prices of smartphones may rise because of this shortage which may end up having less sales, but as the vaccines are coming, so there maybe chances that people would like to spend a few more bucks and grab the deal.

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