The world is currently suffering from a major semiconductor shortage. This has affected various companies across multiple industries worldwide. Now, the shortage of chips has also affected the vast home appliance industry in China.
According to an SCMP report, the Midea Group recently stated that the Chinese home appliance sector is now also suffering from a global shortage. The firm added that the supply of chips is “under pressure in the home appliances industry.” At the moment, Midea has a market cap of about 600 billion Yuan (roughly 91.7 billion US Dollars), which makes it the world’s largest consumer appliance manufacturer. Under its vast electronic portfolio, the company makes appliances like refrigerators, washing machines, and air conditioners.
Midea said the prices of chips used in these home appliances are usually less sophisticated and advanced in comparison to the ones used in PCs and smartphones, but the prices of these chips are expected to rise due to a global shortfall in their supply. Furthermore, this disruption in the supply chain could also hamper the home appliance industry in China and even have a negative impact on the global market for such products.
At the moment, China produces two-thirds of the world’s air conditioners, televisions, and microwave ovens, and around half of all refrigerators and washing machines. We had previously reported on how the home appliance market across the globe was being impacted by the recent shortage, and since China is one of the major hubs for such products, it is likely that the supply issue would lead to changes in the manufacturer’s plans in the region to better adapt to the current situation.
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