domestic appliances and consumer electronics industry, is facing shortages in
components such as semiconductors and chips, said Consumer Electronics and
Appliances Manufacturers Association.
situation may last through and stretch into 2023. Several manufacturers, using
chips as inputs, are now facing bottlenecks in their capacities and expect a
delay in launches of new products, said industry body CEAMA.
and chips are used for manufacturing key components such as - micro
controllers, optocoupler, power relay, switch, varistor, and connectors - for a
range of appliances manufactured by the industry.
manufacturers are also ramping up production fees, which could give an upward
push to prices in the future, he added. However, he also added that the
semiconductor industry is putting more capacity in place, but it will take
time. The appliances price has already witnessed pressure on account of
multiple macroeconomic factors like increase in commodity prices, freight rates
and material shortages.
Shortage of chips, coupled
with rising ferrous products, has also offset the softening of prices happening
in the sector after some of the commodities like resins and chemicals have
shown price corrections, said CEAMA President Kamal Nandi.
are exploring a combination of technical levers (like design optimisation and
value innovation), commercial levers (like hedging, dual sources and
localisation), and process levers (like advance and joint planning with
suppliers) to mitigate the impact, he added.
He also said that, it is a
multifaceted issue with currently no sign of abating. With demand on the rise
and supply likely to remain constrained, this shortage may last through 2022
and into 2023.
Source: ET Auto.com