Since the second half of last year, the global chip shortage has been intensifying, and the chip crisis has spread from the mobile phone and automobile industries to the small home appliance industry. According to CCTV reports, some small home appliance companies stopped production due to lack of cores, and the order delivery time had to be postponed.

In recent years, China’s exports of small kitchen appliances, household appliances, and personal care products have been very popular in the European and American markets. It is expected that overseas orders will continue to be hot in the second half of this year. Although the orders are full, the production and delivery of small home appliance companies are affected due to factors such as chip and raw material prices, especially the shortage of very important micro-control chips in the production of home appliances.

A small home appliance manufacturer in Foshan, Guangdong revealed that since March and April this year, due to the tight supply of chips, the production of small home appliances has been stagnant. The original full-load production line was forced to shrink, and even the delivery time of orders had to be postponed. A person in charge said that the current supply of imported chips is in short supply, and some chips are not even available for money. Take the Korean chip they used before as an example. The price was around 6 yuan before, but now it has risen to 16 yuan, but it is still difficult to get the goods.

According to statistics from the Foresight Industry Research Institute, the market size of China's small home appliance industry in 2019 was 401.5 billion yuan, with a compound growth rate of 13.3% from 2012 to 2019. It is expected that the market size will exceed 640 billion yuan in 2023, reaching 646 billion yuan. It is inevitable that such a large-scale market with great potential has slowed down due to the shortage of chips. The secretary of the house learned that the current chip foundries have resumed production and their production capacity is increasing, which may be expected to solve the core shortage problem.