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Chip shortages are driving up the price of technology — starting with TV

Chip shortages are driving up the price of technology — starting with TV

Televisions, laptops and pills have been in high demand Covid-19 pandemic, as a person Practice and learn through zoom, Socialized via Skype, and enthusiastic Netflix to alleviate the blues block. But all this extra screen time helped the crisis in the supply of semiconductors, which has led to higher prices for some devices, starting with televisions.

In recent months, the price of larger TV models has risen by about 30 percent compared to last summer, according to the market research firm NPD. The jump is a direct result of the current chip crisis and underscores that the repair is more complex than increasing production. It may be a matter of time before other gadgets that use the same circuit (including laptops, tablets, and VR headsets) have similar sticker blows.

Some manufacturers have indicated potential price increases. Asus, a Taiwanese computer manufacturer, he said throughout he called it a quarterly gain in March, saying a shortage of ingredients meant a “further rise in prices,” which is likely to affect consumers.

“Prices are definitely going up,” said Michael Hurlston, CEO Synaptic, a company that sells integrated circuits for controlling touch screens to consumer electronics manufacturers. “In some cases we pass these prices on to our customers, and we have heard that these increases are being passed on to our customers.”

Although tight supply has been felt in the semiconductor industry, these screen-connected integrated circuits pose specific challenges. Because they are not particularly advanced, the circuits are typically made in state-of-the-art chip factories. With flutists focused on building more advanced manufacturing plants that produce more valuable components, there has been little incentive to invest in capacity in older facilities. It’s just possible to get more out of them, even if they have application points.

Chip shortages have already affected all types of devices. Sony told analysts this week The PlayStation 5 would be in short supply until 2022 due to the crisis. Companies that act as intermediaries for electronic components say they have seen some components jump in price orders of magnitude; the voltage regulators used in many products that typically cost 50 cents have been sold for $ 70. But at the consumer level, products that require integrated display circuits are affected first and foremost because of these factory limitations.

“The word I’ve heard lately is that inventories have run out,” says Peggy Carrieres, vice president AVNet, a supplier of electronic components. “So these new prices will go into retail outlets and consumer consumption.”

Although it is a type of integrated circuit, the impact is wide. “Anyone who gets into the screen will be affected by these price increases,” he says Paul Gagnon, general manager of consumer device research at the analyst firm Omdia. This includes He says computer manufacturers have been able to avoid increases by selling devices at the same price but, for example, with less memory.

Electronics retailer Single price Paul Collas, vice president of products for the company, said the product was caused by drought. Monopric will not raise prices, but may have to cancel sales and other promotions. “In some cases, we are seeing the need to invest more in advance payments to partners so that long pieces of lead can be guaranteed to meet our supply requirements.”

The intersection of the factors has caused an unprecedented chip drought. The pandemic sparked a rise in demand for home electronics and cloud services, and a slowdown in the economy misjudged how certain industries would drop demand.

The effects have also been felt beyond traditional consumer technology. The carmakers, in particular, were left barefoot after expecting fewer sales. After the precautionary cancellation of semiconductor component orders, many car manufacturers have done so he had to stop production while waiting for reinforcing supplies to arrive. Interruptions in wider supply chains have also damaged, including a factory in Japan in the March fire that makes various semiconductor components — including integrated display circuits.

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