Chip problems have already affected other industries

The problems with global chip shortages are spreading to other sectors. After car manufacturers, manufacturers of computers, mobile phones and other high-end electronics, manufacturers of refrigerators and other home appliances have already been affected. This was pointed out by Jason Ai, President of Whirlpool's Chinese division, who is currently unable to meet demand. The Chinese division of the American company, which is one of the world's largest manufacturers of so-called white goods, lags behind in China's exports to Europe and the US by up to 25%, said Jason Ai on the sidelines of the Appliance and World Electronics Expo in Shanghai. "On the one hand, we have to satisfy domestic demand for appliances, on the other hand, we are facing an explosion of export orders." The company has problems securing enough so-called microswitches, simple processors that it uses in more than half of its products, including microwave ovens, refrigerators and washing machines. The lack of chips has also affected a number of manufacturers of high-end advanced electronics, as well as car manufacturers. The problems started to appear last year at the end of December. They were partly caused by the fact that carmakers incorrectly estimated the development of demand during the pandemic of the new coronavirus, which also led to a sharp increase in sales of smartphones, laptops and other electronics. This has forced automakers, including the US General Motors Group, to reduce production and increase costs for smartphone manufacturers such as China's Xiaomi. Every company that uses chips in its products now buys in panic to build up inventory. The lack of components has already caused problems for Whirlpool and other appliance manufacturers. Hangzhou Robam Appliances, a Chinese white goods manufacturer with more than 26,000 employees, had to postpone the launch of a new high-end stove for four months because it did not have enough microswitches. "Most of our products are already optimized for use in so-called smart homes, so, of course, we need a lot of chips," said Dan Ye, Robam's chief marketing officer. The lack of chips thus further compresses the profit margins of white goods manufacturers, which were already low enough for tough competition and a slowdown in the real estate market.