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Sunday, 11 July 2021

Demand increased due to work from and online study, but supply decreased by 45%

 Demand increased due to work from and online study, but supply decreased by 45%

Demand increased due to work from and online study, but supply decreased by 45%


According to a report, the demand for PC shipments is increasing globally. As a result, the chip shortage in the first quarter of 2021 has increased by 45% (on year) to Rs 7.56 crore. Chip shortages could affect PC brands and ODM (Original Design Manufacturing) shipment schedules in the second quarter. With a 24% market share in the PC segment, Lenovo regained the number one spot in the first quarter. It is followed by hp with 23% market share and Dell with 17% market share.


Demand increased due to work from home

According to research by tech research firm Counterpoint, the overall growth of the PC market is mainly due to the growing demand for gaming notebooks in the currency, work from home and study from home segments. This has led to an increase in sales of Chromebooks.


The top-6 sellers will maintain their position in the market

The number of PC shipments in the second quarter of this year may be higher than in the first quarter. "We are confident that the top 6 sellers will cover more than 85% of the market share," said William Lee, a research analyst at the Semiconductor and Components team.


Problem due to lack of ODM main component

ODM is still facing shortage of main components like power management IC, display driver IC (with display panel) and CPU. "We've seen a gap of 20% to 30% between order (and demand) and actual shipments," Lee said. This is due to the shortage of components starting June 2020. Some chip sellers have said that demand for audio codec ICs and LAN chips has not lived up to expectations.


By the end of 2022, the demand-supply gap will narrow

PC brands and ODMs cannot meet this shortage, nor can they clear the order backlog. The report hopes that by June 2022, the demand-supply gap will return to normal. The second quarter of this year will see more demand than last year.

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What is the cause of chip shortage?

According to experts, there is a shortage of chips due to the Kovid-19 epidemic. Demand for electronics devices, including cell phones and laptops, has increased worldwide during the Corona period. Vehicle companies canceled orders in March 2020 due to a lockdown. When unlocked, factories around the world began to open and demand increased again. Due to this, the demand for chips is increasing and there is a shortage.

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