The global chip shortage affected the production of low margin home appliances

The recent intensifying global chip shortage has spread to the field of home appliances. It is reported that the problem of chip shortage not only affects the manufacture of mobile phones and other equipment, but also the production of simple, low-profit equipment such as weighing parts in washing machines and toasters, which are also affected by the shortage of chips.

The report quoted an industry insider as saying that since manufacturers allocate production capacity to high-margin products, the priority of chip production for these home appliances can only be ranked behind.

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According to reports, both Samsung Electronics and LG Electronics are facing production delays caused by the “chip shortage”, and this delay is expected to continue until 2022. Samsung is the world’s largest computer chip manufacturer.

Its two major component suppliers said that Samsung Electronics began to cut orders for some smartphone components in April. Home appliance manufacturer LG Electronics said that the chip shortage has not affected the company’s overall production at present, but it also admitted that it does pose a risk.

(Via)