Is The Chip Shortage Over? A Number Of Manufacturers Stated: Lack Of Core Has Eased
As the earnings season unfolds, many corporate executives are discussing current industry supply chain issues at earnings conferences. On Thursday, corporate executives in many different fields all released the same signal: the "core shortage" problem that plagued them last year has eased.
This is undoubtedly a boost for downstream manufacturers; but for chip manufacturers, the mood may be more complicated - although chip supply has increased, the chip industry still needs to deal with rising raw material prices, tight energy markets and interest rates Rising pressures on consumer demand, among other issues, are likely to continue to weigh on profit margins.
Many corporate executives said that the "lack of core" has eased
On Thursday, Hyundai Motor reported a splendid financial report, showing the company posted its highest single-quarter profit in eight years in the second quarter.
Hyundai executives mentioned in the earnings call that the easing of the global chip shortage has been a big help for the company, allowing the company to resume overtime and weekend shifts at domestic factories. Hyundai now plans to continue expanding production in the second half of the year to meet consumer demand.
Swiss industrial robot giant ABB said in its second quarterly report that the bottleneck of semiconductor chips is now easing. ABB is a leader in industrial robots in Europe and the world. The control systems and motors produced by the company are widely used in the transportation industry and factories. Its business performance is often regarded as a barometer of the global economy.
ABB executives mentioned that there was a severe shortage of semiconductors at the beginning of the year, but the situation is now improving. The company expects double-digit revenue growth over the next three months as increased supply of chips puts less pressure on the company to deliver factory robots, motors and drives.
ABB CEO Rosengren said that chipmakers' capacity is increasing, while demand in other industries such as consumer electronics has weakened, allowing industrial customers such as ABB to obtain more chips. "I can't say the problem is fully resolved, but we think the second half of the year looks pretty good," he said.
Telecom equipment maker Nokia also said it expects the global semiconductor shortage to ease later this year.
Nokia Chief Executive Pekka Lundmark said: "The overall direction of the semiconductor industry is positive right now, but it does continue to be constrained in the second quarter."
Volkswagen said last month it expected strong growth in the second half of the year as chip shortages gradually eased and offset supply chain bottlenecks and rising costs.
Europe's largest appliance maker, Electrolux, reported second-quarter earnings that missed expectations. The company said the underperformance was largely dragged down by supply chain issues and losses in its North American operations, but it expected supply chain constraints to ease in the second half of the year.
The company executives also specifically mentioned that the semiconductor supply situation in the second half of the year looks better than the first half.
