the situation of chip in shortage of demand

Mar 26,2021

The chip industry are experiencing the unprecedented period of shortage and the chips' pricing of vehicle, phone are increasing dramatically. Security industry is one of them which face such situation, moreover, it is worse because of the increasing demand. Based on CCTV Financial Reports, the topic no chip for security industry, camera prices is increasing” is the hottest in research records.


Prior to August,2020. the pricing and supply of Hi-silicon chip are stable and it is soaring during August 5th to August 10th and the increase reaches 5 times in the early of September 2021


According to a report by CCTV Finance and economics on March 23, there is a shortage of security chips, and the delivery cycle of security products has been generally lengthened by half a month or so. The delivery period of some products has been extended to nine months, and downstream agents have increased their stock appropriately.


Compared with the shortage of IPC chips, Hi-silicon chips was banned in the second half of 2020, the supply situation in this chip market is more severe.

"The shortage has officially broken out since last year's Q3, with a sharp deterioration in 2021,"one practitioner mentioned.

In addition to the main control chip, core components such as IPC SoC, Memory Chip and WiFi Chip are in a shortage of demand.

"Memory chips are the most out of stock, followed by the main control chips."

"In fact, the goods on the market can completely meet the demand of South China for more than half a year, but the demand has been enlarged. A company that is out of stock 10K asked 10 buyers. The market thought that there was a demand of 100K, and the market had a 30K goods, so the gap of 70K came out invisibly, so the price was fried up," added by a module supplier, "It's also because some traders are taking advantage of market anxiety to stock up."



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