Will Chip Shortage be Alleviated?
“It is predictable that chip production can be recovered by the middle of 2022. However, it’s hard to tell if that will alleviate the shortage of chips used in consumables,” said Guanguo Wen (pictured) from Print-Rite Technology Development Co., Ltd.
Wen shared his insights to the participants during the Summit held concurrently with RemaxWorld 2021 in September.
The printing consumables industry, along with other industries, has been facing chip shortages since last year. According to Wen, the outbreak of COVID-19 and the sanctions the U.S. imposed on major Chinese chipmakers are the two main factors contributing to chip shortage in China.
“As we all known, price is affected by supply, demand and technology. Because of COVID-19 and U.S. sanctions against Chinese major chipmakers, the overall chip production is far behind the ever-increasing demands in the market. On the other hand, the increase in raw material price made the situation even worse,” Wen said.
As noticed, the Chinese integrated circuit (IC) industry received attention recently regarding national policy and capital market. As Wen revealed, some wafer factories had begun expanding production. It is expected that wafer factories will release full capacity by the beginning of 2022.
Wen believes that chip supply and demand will definitely reach equilibrium in the future.
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