Electronic Components, Which Have Long Cost Downstream, Are Now Falling Flat

Over the past decade or two, the main reason for the continuous consolidation of international chip manufacturers is the continuous decline in the unit price of chips (ASP). Especially analog chips. That's a point THAT I don't want to look for data on the Internet. Now the industry is speculating about the price rise, not only the valuation of chip companies, stock prices, components in the market is rising vigorously. That's a big change from decades past.

For downstream, cost reduction is the big trend. Including labor costs, material costs, and manufacturing costs. In the 1990s, the average person had to spend more than 10,000 yuan, several years' salary, to get married on three major items, TV, amplifier, and stereo. How about now? Home appliances have gone down, but houses have gone up. People increasingly do not accept expensive electrical appliances, including mobile phones and computers.

So even in the past, even in a special period, the industry (machine manufacturing) difficulties, we also came to Cost down together. After all, everyone knows that big customers can survive, chip upstream business performance can be better.

Now, maybe you don't know what I'm talking about. In short, it's two points.

First, international factories and Taiwan factories, even in the current special period, are still trying to maintain low prices for existing big customers, goods, at most just reasonable delivery of materials and wafer enterprises rising costs. For example, fans on the market, small household appliances, small electrical appliances, PCS, and other products of starfish, as far as I know, the supply of Taiwan chip enterprises is still relatively stable, the price changes little. How far have they cut costs? You can't see their promotion in the market, the original factory, and agent direct service, without any middleman's fee.

Some original factories, especially domestic chip original factories, intend to grab this kind of head customers, it is easy to lose not to please. One is that you may not be getting particularly good customers, and it is unclear how long the emerging brand market will last. The trend of consumer electronics brand concentration is hard to change.

Second, Taiwan does not rush into emerging markets, worried about the lack of long-term sustainability of the market. Why are fast charging, mobile power supply, and wireless charging made in China? The world of IC? Mainly because this is the exclusive manufacturing base in mainland China, emerging products, technology threshold is not high, Cypress, IDT and other international manufacturers in the technical response and price is difficult to PK domestic original factories.

International manufacturers can make the best products and even set the technical standards (such as PD), but they can never make the price. Emerging markets left the country, the production of chips, and many chip companies because of the performance of these areas, become public companies. It was really good. The chip of the mainland has only a little is the world martial arts, only fast not broken! But the shortcomings are also obvious, market volatility, performance stability is not strong.

For example, last year's temperature gun, a rumor that one of the manufacturers of temperature sensors made a billion dollars last year, this year the company will not bother to open. Because there is no way to do the back market.

Try not to touch a volatile and persistent market. Research and development costs may not be spread down the end of the market, the back is not fun. Some people say the industrial computer market is good, you see the performance of the industrial control duo so many years change big? Do the domestic chip LONG core of industrial computer market, the performance rises?

Although the mainland chip manufacturing and research and development wages have risen, the company's share price has soared. Until their downstream customers do not do well, sooner or later there will be problems.

Although the well-known semiconductor capital tycoon Mr. Chen said well, the semiconductor industry now has a bubble that will be healthy. But the price rise to the downstream enterprises can not live, or transfer or not, such industry health as early as possible by false fire drag down.

In general, price is the core of competitiveness. Chip manufacturers as long as the market is free competition, low prices to eat more market share. The one with the largest share is basically the price benchmark for the industry.

International original supply went wrong during the epidemic. Middlemen and some domestic chip companies suddenly saw the opportunity, downstream factories can not take the goods out of the goods, the factory will stop, production line workers have nothing to do. In the eyes of some domestic chip experts, even if the chip price is higher than the idle factory is better ah.