Supply of consumer electronics chips have begun to balance

According to industry insider, the shortage of some chips used in consumer electronics has begun to ease, and suppliers have begun to adjust inventory. In Mainland China, the supply and demand of MCUs, CMOS image sensors, display driver ICs, and power management ICs have begun to balance.

The Insider pointed out that the sales of mobile phones, laptops, TVs and other consumer electronics products are expected to peak in the third quarter of 2021, but related chip suppliers have begun to slow down placing orders at foundries because they found OEMs have become less active in purchasing certain chips, indicating that the inventory of these chips is sufficient.

However, automotive chips are still in short supply. The source pointed out that the foundry said that automotive chip customers are more eager to reach long-term supply contracts.

Although global chip supply is still tight, some Semiconductor industry analysts have expressed concern about the massive expansion of foundries. The insider said that more production capacity will be released before 2023, but whether there will be such a large demand in the future is still unknown.

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