There is a frenzy in factories all across the world in fulfilling orders for cars, electronic devices, servers, 5G equipment’s, IOT and a host of other electrical items. However, most of them are incomplete or awaiting an important component to ship.
The global shortage in chipset or micro processors is weighing heavily in manufactures who nowadays install them in nearly everything. Ever since trade resumed after the pandemic lockdowns, demand for high end tech products surged promoting chipset makers to push their production line beyond capacity. Plants are being erected at breakneck speeds to ride the demand band, even in Malaysia consortiums are working together to meet supplies. But the country that is benefitting the most in this commerce is China. According to the latest report from its Industry and Information Technology Ministry, the electronic information manufacturing sector has been posting a steady expansion in the first seven months of 2021, the export delivery value of major enterprises in the sector rose 15 percent year on year in the period.
In July alone, the added value of those manufacturers grew 13 percent, accelerating by 1.2 percentage points from the growth during the same period in 2020, the data showed. MIIT data also showed that the operating revenue of major electronic information manufacturers went up 22.1 percent year on year to USD 980 billion in the first half of the year. At the same time, their combined profits in the period totaled USD53 billion, surging 45.2 percent year on year.
In July, China’s production of integrated circuits jumped 41.3 percent to 31.57 billion pieces, the world IC demand is set to grow at an compound annual growth rate of 8 percent or USD 360 billion in 2020 to USD391 billion in 2021. As stated the growth is attributed to companies rearranging their operations and recovery from the Covid-19 impact which had restricted operations and movements. Taiwan, South Korea and US are major players in the chip foundries, but China with fairly with less impact on the pandemic its industry is quickly pivoting to meet the demand surge and adding new production like they were Lego blocks.
