The rising price of raw materials for electronic products is likely to continue into next year

Recent IC, LCD and other electronic products raw materials "rising tide" coming turbulent.

In particular, the increase of the display screen has already exceeded 100%, and even the price change is the same day by day. What's more alarming is that the price rise is accompanied by serious shortages.

The news shows that the current many LCD screen factory has stopped quoting, receiving orders, even if it is willing to pay a high price can only wait in line, a week can be divided to 300-500 pieces of LCD.

At the same time, but also affected by IC prices and out of stock, in the field of car and aircraft navigation, for example, a number of solution providers have stopped receiving orders, or can only deliver a part of the motherboard every day, the average to the brand company only about 200-300 pieces of quantity.

This supply, absolutely exceeds the demand. In this extreme market, the needs of small companies are even ignored.

The continuous price rise and stock shortage have brought great pressure to the operation of upstream and downstream enterprises in the automotive electronic afterassembly industry.

Why the price increase?

Electronic components are affected by exchange rate, supply relationship and other factors, resulting in the electronic industry from time to time will usher in a long or short price rise.

This price rise is no exception, but in such a special year as 2020, the price rise is doomed to be fierce and lasting.

On the IC side, due to the months of outage during the outbreak, the wafer foundry capacity continues to be tight, unable to meet the market demand, which in turn leads to the semiconductor price trend has been blown from the foundry to the upstream IC design. In addition, in the trade war, the so-called "sanctions" imposed by the United States on relevant Chinese enterprises have further aggravated the industry's concerns and led to rising voices.

Among them, the union xu up to 10%-15% increase on the first shot in October chip prices.

In LCD, the imbalance between supply and demand structure is also the main reason.

Similarly, the long-term shutdown caused by the epidemic and the withdrawal of major factories in Japan and South Korea, combined with the influence of factors, make LCD production capacity unable to keep up with the market demand, resulting in a long period of stock shortage and price rise.

In addition, LCD industry enterprises in order to change the general operating losses and industrial (price) correction is also one of the reasons for the price increase.

From the current understanding of the situation, in the supply side of the wafer, sealing and testing capacity has appeared the trend of shortage, reflected in the supply reduction; Lags in production capacity and imbalance in supply caused by the international situation and the restriction of the epidemic are the main reasons for the price rise and shortage of goods.

A number of industry insiders have said in interviews with the media that the imbalance between supply and demand may last until the first half of next year (2021) under the influence of multiple factors (the epidemic and the trade war).