Global Chip Shortage - Chip Prices Are Once Again on the Rise

According to a CCTV financial report, chip prices have risen continuously in recent years, and chips have changed from being unavailable to unaffordable. The latest research report of Goldman Sachs pointed out that as many as 169 industries around the world have been hit by the shortage of chips to some extent, including steel products, concrete production, air-conditioning manufacturing, beer brewing, soap production and many other industries.

The accelerated global "chip shortage" has made rise in the price of chip unaviodable. "Unavailable" and "unaffordable" have become a common dilemma faced by many downstream companies. A practitioner told a reporter that the price of a German-made chip they used was 3.5 yuan last year, and this year it has risen to 16.5 yuan, which means the price of a chip they use has grown 500 percent.

The epidemic has caused many processing plants around the world to fail to operate in time, home office and online training have become normal in many areas, and the demand for consumer electronic products has soared.

Earlier, Elon Musk also admitted that the shortage of chips has caused serious damage to the supply chain of electric car manufacturers. He also accused many companies of ordering microcontrollers in excess of demand, just like consumers rushing to buy toilet paper in the early days of the epidemic.

He said: "Our biggest challenge is the supply chain, especially the supply of micro-controller chips. I have never seen anything like this before. People worry chips will be in short supply, every company is overbooked, which is like a toilet paper shortage, but on a much larger scale."