What impact will the lack of chips have on connector industry?

Starting in the second half of 2020, the chip shortage trend has intensified globally, gradually spreading from the automotive industry to all consumer electronics industries. On the one hand, the short supply of chips has led to the selective reduction or suspension of production of terminals, and on the other hand, it has led to collective price increases of chips. For connector companies that are under the pressure of rising prices of raw materials such as copper and plastic, it is undoubtedly worse, affecting production costs and product delivery.

The shortage of chips has led to general delays in shipping time. The overseas chip shipment time has been extended from the previous 3-4 weeks to 7-8 weeks, and the domestic chip is about 4 weeks. The entire process from components to finished products for consumers It stretched two or three months longer than usual. In addition, the shortage of chips will cause instability in the terminal market, and feedback to the connector manufacturers may be the instability of orders.