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Out-of-stock price increase may cover the whole year of 2022

Although "out of stock" has become a "new normal" in the electronics industry, operators are still very sensitive to the information of price increases.

Looking forward to 2022, we believe that the "out of stock" dilemma cannot be completely alleviated in a short period of time, and the structural shortage will run through the whole year of 2022, which may be concentrated in hot categories such as automotive MCU, power components, power management chips and so on.

As for the "price increase", which is a specific manifestation of the fluctuating market, which belongs to the regional and some categories, it is suggested that the industrial chain should deal with it by strengthening communication, exchanging market information, sharing analysis and forecast, and so on.

The primary factor causing the out-of-stock market is the volatility of COVID-19 's epidemic situation.

It is optimistically predicted that if the global epidemic is fundamentally brought under control in the second half of 2022, the shortage of global mature process semiconductor components is expected to be basically alleviated by the end of the year.

Nevertheless, this is longer than originally expected for Q2 in 2022, and the long-term and short-term situation will also be prolonged. It is hoped that the industry chain will continue to pay attention to the impact of the epidemic on the overall electronic supply chain.

On the other hand, on the demand side, under the normalization of global epidemic prevention, the steady growth of market demand is the consensus of the industry.

For example, the demand for application chips such as 5G, AI, Internet of things and Advanced driving Assistance system (ADAS) continues to be strong, which can make up for the signs of slowing down in the market demand for some end products, and the overall market demand can still grow steadily in 2022.