In this article, Midas Displays’ sales manager, Mark Lovick, explains some of the reasons why lead times/prices are increasing and when to expect some stability.
It is clear to Midas Displays that the electronics supply chain will continue to suffer from increased prices/lead times, due to rising demand and supply shortages, throughout 2022.
Regarding ICs, there is currently extremely high demand and a severe shortage. Reasons include: high IC demand for the development of 5G networks; high demand for displays and ICs used in home-office and home-schooling equipment; plus pent-up demand caused by the pandemic. In addition to driver ICs and microcontroller shortages, TFT glass is in demand for mobile phones, laptops, automotive and numerous MMI products, yet there is a limited number of display glass manufacturers. Thus, supplies to TFT manufacturers have been limited, leading to significantly longer lead-times and inevitably higher prices.
In Q4 2021 another issue further impacted lead times. A number of Asian factories stopped production for up to four days per week because of power cuts/curbs. Several provinces including Guangdong, Anhui, Jiangsu, Zhejiang, Shandong, Guangxi and Yunnan have implemented measures to curtail power and suspend production. Essentially, to catch up from the Covid-19 pandemic, factories have used their ‘allocated energy quota’ quicker than expected and are now suffering from severe supply shortages.
The severe supply issues of displays will continue throughout 2022 and, we believe, in to 2023.