Routers are selling like hot cakes but chips are hard to come by, 3C sellers are suffering a heavy blow!

Demand continues to grow, and routers are selling like hot cakes

In this context, routers have become a hot commodity, with sales continuing to grow since the outbreak of the epidemic last year. Recently, there have been frequent reports of shortages of raw materials for network communication products such as routers . Is the "chip shortage" coming again?

It is understood that a few brands have already experienced supply shortages, and the intensity and frequency of platform promotions have also been visibly reduced. In this regard, some brand owners believe that this is likely to be a preparation for future shortages .

Industry insiders pointed out that the number of network communication devices replaced has exploded instantly , which was originally expected to be achieved in the next three to five years. Since the second quarter of last year, the domestic sales and exports of routers have been very impressive , and many manufacturers have gained a share of the sales.

The head of a network communication products company said that last year's monthly turnover was about 30 million US dollars, and this year the figure has increased to 35 million US dollars.

The "chip shortage" is coming again, and 3C sellers are hit hard

Routers continue to be hot in the market, but due to the extremely tight supply of upstream raw materials such as chips, shipments are directly limited. The head of a company said that 2.3 million chips can meet the company's production for one month, but the current inventory may only meet the production needs for one week.

Previously, the president of TSMC said that the semiconductor industry is likely to be in short supply in 2021, and the overall shortage may continue until 2023.

Chips are out of stock, out of stock, the supply chain is tight, and prices are rising again and again. Many 3C sellers are complaining and saying they don’t know what to do. 5G mobile phones are one of the "big guys" in semiconductor consumption. People's demand continues to grow, and many mobile phone manufacturers are frantically hoarding large quantities of chips.

Indeed, the "chip shortage" has affected more than one field. 169 industries including industry, automobiles, and home appliances have also been hit.

Some time ago, foreign media reported that many manufacturers chose to allocate production capacity to high-profit products, and the home appliance field was also affected. Many people did not expect that the chip shortage would have such a huge impact on low-profit home appliances such as washing machines and toasters .

In recent years, kitchen and daily small appliances have been particularly popular in overseas markets. Data shows that in the first quarter of this year, China exported 2.78 trillion yuan of mechanical and electrical products, accounting for 60.3% of the total export value. It is expected that this trend will continue in the second half of the year.

A good cook cannot cook without rice. The "chip shortage" is undoubtedly a heavy blow to manufacturers and a critical blow to 3C sellers. Price increases may be inevitable.

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