Due to the impact of COVID 19, there is a serious shortage of chips in various industries. Because the production lines of some chip companies are affected by the new crown pandemic, productivity cannot keep up. There is also no way to produce chips because of the actual components. The shortage of this chip has seriously affected the progress of various industries. And it caused the touch screen prices are rising.
Due to the shortage of chips and the price increase of LCD panels, not only the price of TV sets has risen, but also the shortage of goods is serious. On various online shopping platforms, the prices of televisions and monitors of many brands have increased by several hundred yuan compared with the beginning of the year. This situation is not common in previous years. A person in charge of a TV manufacturer in Kunshan, Jiangsu, told reporters that LCD panels accounted for more than 70% of TV costs.
Since April last year, LCD panel prices have started to rise, and companies can only ease operating pressure by raising product prices. The reporter learned that affected by the epidemic, demand for TVs, notebooks, and tablet devices in overseas markets is very strong, which makes LCD panels in short supply and prices rise. As of June 2021, the purchase prices of small and medium-sized panels of 55 inches and below have increased by more than 90% year-on-year, among which 55-inch, 43-inch and 32-inch panels have increased by 97.3%, 98.6% and 151.4% year-on-year. In addition, the shortage of raw materials for many LCD panels has also exacerbated the contradiction between supply and demand.
The shortage of chips has also affected the price of touch screens. For example, the price of ILITEK chips. Compared with the year-on-year price of the previous year, the price of ILITEK chips has risen almost wildly, increasing by more than 50% over the previous year. And this is just a rise in chip prices, almost all raw materials are rising. So this has caused the price of our touch screen to rise a lot this year. And many orders are longer than before.
Although the existing chips are seriously out of stock, this also brings business opportunities to various industries. There are many new chip solutions to replace old chips. This has brought some relief to the current situation. However, we compared the orders of the past year. In this difficult year of 2021, customer demand for touch screens has indeed doubled. So I still believe that the future of touch screens is very impressive, and it is only temporarily encountering difficulties. As long as this difficulty is overcome, there will be explosive growth in the future.
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