According to statistics, in 2020, the sales scale of Shenzhen's integrated circuit industry will reach 172.726 billion yuan, and the growth rate of the industry scale will reach 18.91%. Among them, the sales revenue of integrated circuit design industry totaled 128.755 billion yuan, a year-on-year increase of 13.84%, accounting for 74.54% of the scale of Shenzhen's integrated circuit industry, and the proportion of sales revenue in the national design industry was as high as 34%.

The chip delivery time is extended again, and the hype is rekindled

In fact, as early as March 3, Shenzhen Huaqiang North Street has begun to suspend business. The largest integrated circuit retail market in the country and the world is also known as "China's first electronic street", covering an area of ​​1.45 square kilometers. Only 50% of the domestic open market electronic components spot transactions. The shutdown of Huaqiangbei has also made the already tense chip supply chain nervous, and even brought a wave of panic hoarding.

Since 2021, the chip market has been caught in a general tide of shortages and price increases, which has also caused many manufacturing manufacturers to increase their investment in production expansion. By 2022, as the production lines of these manufacturing industries are implemented, the delivery time is on the way. shorten.

However, after Huaqiangbei stopped operations due to the epidemic, chip transactions and logistics in the secondary market were affected. The situation in Huaqiangbei is also the epitome of today's Shenzhen. According to research by Haina International Group, in February, chip lead times increased by three days to 26.2 weeks, while in January this year, the group reported that lead times were actually shortening.

Chip product lead time

In addition, in terms of specific categories, such as the delivery time of microcontrollers reached 35.7 weeks, the delivery time of power management chips has also increased by about a week and a half, and the delivery time of automotive electronic products has generally increased by more than two weeks.

The increase in delivery time is not unrelated to the increase in entry declarations in Hong Kong. For example, in mid-February, the time limit for Hong Kong customs declaration to enter Shenzhen has been extended to 3-5 days, which is double the original time. It is also necessary to sterilize and stand for 24 hours, and the express delivery time for export has been increased from 2 days to 4-5 days.

At the same time, the shutdown of Shenzhen has also caused many semiconductor manufacturing companies to suspend operations. For example, Foxconn has currently suspended the production of the iPhone factory in Shenzhen, and the recovery of business depends on the government. Not only Foxconn, but most IC electronics factories in Shenzhen have been shut down.

The reduction in production capacity and the lengthening of the delivery period have also begun to make the price of components in the market seem to be hyped up again. Even some time ago, Shenzhen Huaqiangbei broke a joke that a boss in a chip business offered a reward of 1 million yuan in order to retrieve a plate of chips that he had lost.

The reason why the bounty is so high is mainly because this chip is a car-grade chip TPS92692QPWPRQ1. In the middle of last year, the price was 100 yuan per piece, but today, the market price has come to 900 yuan per piece. The number of a small plate is 2,000 pieces, and the value of one plate is 1.8 million yuan. Even if the reward is 1 million yuan, the boss still has a lot of money.

Of course, in any case, as long as the market remains in short supply, it will lead to hype. However, on the other hand, this market situation has also made many chip manufacturers in contact with them continue to operate even today, so that the market will not be completely shut down. But it's not good news for those manufacturers that need chips to make products.

Chips stuck on shoreline

The one-week suspension in Shenzhen this time may not only bring about the lengthening of the delivery cycle of the chip market, or the rise in prices, but the more serious situation may be the suspension of freight, which makes it impossible for chips to be shipped from Hong Kong to Shenzhen, and then from Hong Kong to Shenzhen. Shenzhen leads to the whole country.

The previous outbreak of the epidemic in Hong Kong has made the passage of chips more complicated, especially in the past, the import of chips was mainly through express mail. If the volume is large, the import can be declared in batches. But now a single has been limited to less than 3KG, while in the past it can reach tens of kilograms. This also makes chip imports have to be split into more orders, which is very obvious for the increase in cost.

However, the part of the price increase after the split order is usually borne by the traders. In order to cope with changes in costs and prevent losses, traders and related personnel can only choose to make large orders, which also makes it impossible for many customers who need small batches to get relevant products in time.

Another impact is that due to the need to split more orders, the workload of sorting has increased, which has led to the shortage of warehouse sorting due to the epidemic. Many goods have been accumulated in Hong Kong warehouses and have been unable to leave the warehouse. Long delivery time.

According to official customs data, China's integrated circuit imports in the first two months of 2022 fell by 4.6% year-on-year, the first year-on-year decline since the beginning of 2020. On the other hand, the global chip shortage has pushed up the price of semiconductors, and the total import price has soared 19.2% to $68.8 billion.

Not only has the quantity of imports decreased, but the price of imports has also risen sharply. According to public data, 80% of high-end wafers in China currently rely on imports, but due to the epidemic, many customers have been unable to obtain wafers or wafer futures have been delayed, resulting in many small foundries unable to produce.

Some industry sources revealed that due to the Shenzhen epidemic, the semiconductor factory where he works has been notified to suspend production, and the factory has not stopped production since 2020.

For downstream enterprises, under the current situation, they are facing a short period of labor, insufficient supply, prolonged delivery, and rising costs. The strict control in Hong Kong, Shenzhen and Dongguan has greatly affected the trade, design and manufacturing of chips. At present, this impact has not been transmitted to consumers for the time being, but the risks in the future should not be underestimated.

The bigger risk is that the epidemic in Hong Kong has not yet seen signs of complete control, which has also made it impossible for many cross-border drivers to achieve transit operations. Many products have been piled up in Hong Kong for unmanned transportation, and the transportation capacity is seriously insufficient. In terms of cost, before the outbreak of the epidemic, the freight forwarding company cost about 1,000 yuan for a single transportation, but now it is close to 10,000 yuan.

The closure of Shenzhen and Dongguan has also made it difficult for those components and products transported from Hong Kong to be sent to relevant enterprises, and the enterprises cannot produce as scheduled, and production and transportation are also a problem. These chips have been blocked on this coastline.

write at the end

Since this year, there have been sporadic outbreaks of epidemics in Shenzhen, which have had a lasting impact on the city's production order, including chip production and trade. The one-week closure of the city this time is also to completely solve the problem and restore the city to its previous order. It's like a multiple choice question, whether it's a long pain or a short pain, but this time the choice is to cut the mess with a quick knife.