Stock Groups

Chip shortage could persist for another 2-3 years: Hisense President

[ad_1]

QINGDAO, China — The global chip shortage could persist for another two to three years before ending, the President of Hisense, one of China’s largest TV and household goods makers, told CNBC.

From automakers and consumer electronics manufacturers to automotive companies, industries exist. dealing with a shortage of semiconductors This is how shortage of productsGames consoles, for example. manufacturers struggling to keep up with demand

Chinese companies, including electric carmakers, are also feeling the pinch

Hisense Group Holding Co. is a Chinese state-backed manufacturer of televisions and other household appliances. It has also seen some success. Jia Shaoqian is the president of Qingdao’s company. He said that while the price of its products have risen, the business has not changed.

“Hisense makes home appliances and consumer goods, and this requires relatively simple chips. Jia spoke Mandarin to explain that even though the market is tightening and prices have gone up, their business still remains stable, according to CNBC.

People visit the Hisense booth during the Appliance & Electronics World Expo (AWE) 2021 at National Exhibition and Convention Center (Shanghai) on March 23, 2021 in Shanghai, China.

Chen Yuyu | Visual China Group | Getty Images

Jia explained that chips are mainly imported to China while final products are made in China. Since Trump’s presidency, the U.S. has been embroiled in a trade dispute with China. These trade tensions persist today.

They have been a source of tension for both nations. America has looked to cut off China’s biggest chipmaker SMIC from U.S. technology

A number of factorsThe chip shortage was caused by a spike in consumer electronics demand and lockdowns all over the globe after the pandemic. Companies also stockpiled supplies due to the U.S. Trade War with China.

Jia stated that if “no major issues” are raised in global trade disputes, then the shortage of chips could be solved within two-three years.

“Otherwise if sanctions of trade and economy between nations continue, it is really hard to estimate,” Jia saidIt could.

Major executives globally expect the chip shortage to last into 2022. Many believe that it may extend further than this.

U.S., Europe expansion

Although Hisense is not well-known to most consumers, it has worked hard to increase its visibility in key markets.

It is also a sponsor for the Euro 2020 soccer tournaments and World Cup soccer tournaments. It has plans to grow outside China.

Hisense is currently looking to grow internationally through the acquisition of brands from other countries and licensing deals. It has expanded overseas manufacturing and established research and development offices all over the globe.

Hisense currently receives around 40% of its revenue from outside China. Jia expressed the hope that 50% of the business would come from China over the next three to five year.

Jia said that the next phase of Hisense’s global push for consumer electronics will be focused on creating its own products under Hisense brand.

“It’s the mother brand… Jia explained that Hisense branding will help fill in the gap where there are no existing brands and regions where they have been reduced. We will build our brand and follow the Hisense model from the bottom to the middle to produce top-end products.

As long as we produce value at low cost, lead in technology, increase our services and quality, consumers will still like us — in China or globally.

Jia Shaoqian

Hisense Group Holding Co.

Few Chinese brands managed to penetrate the European market. This is somewhat different from the U.S., where a few have. There are many companies that specialize in smartphones, such as Xiaomi,Oppo and Vivo have been successful.

However, governments have been closely monitoring the growth of Chinese brands. Huawei has been accused by the U.S. of being a threat to national security, which is a charge that Huawei has denied repeatedly.

Jia stated that he believed negative sentiment towards Chinese brands would not hinder Hisense’s drive to expand globally.

Hisense does not work in the same industry as Chinese brands, but there is some confusion among consumers about Chinese brands. We manufacture home appliances. As long as we produce value at low cost, lead in technology, increase our services and quality, consumers will still like us — in China or globally,” Jia said.

“We’ve grown rapidly in America and the European market over recent years and have not been affected by this, which shows that consumers will be able to choose with their wallets.”

[ad_2]