Small parts that were less than 1,000 won suddenly rise to over 10,000 won
Domestic companies lose in price and quality, dependence on China increases
Government support needed to foster domestic parts manufacturers
Domestic parts manufacturers are facing difficulties due to serious parts shortages, such as shortages of some parts, which are causing disruptions in product production. As small parts depend heavily on China, there are growing calls for creating an environment for the revival of small parts manufacturers that have been struggling for a long time in order to ensure the survival of the Korean electronics industry.
It has been reported that the electronic components industry is experiencing a serious shortage of components recently. 100nm decoupling has caused shortages, and some companies are saying that there is no 1K resistance.
There are even reports that the shortage of some automotive semiconductors is so severe that purchasing staff at automakers are stationed at domestic branches of foreign automotive semiconductor companies to receive supplies.
In particular, for small electronic components, the supply from China is reportedly blocked, and the price of some components, which used to be less than 1,000 won, has reportedly skyrocketed to over 10,000 won.
Even in this reality, it would be fortunate if parts could be obtained, but it is reported that there are many cases where orders are abandoned because parts cannot be obtained.
It has been reported that the remaining parts are being swept up by large companies and supplied first to their partner companies, while small companies without any ties to large companies are reportedly giving up due to the serious shortage of parts.
The reason for this is analyzed to be the high dependence on Chinese parts.
In the case of small electronic components made in China, they are competitive compared to domestic component manufacturers because they are cheap and of good quality. However, it is analyzed that this is because there have been difficulties in supply and production of components due to the recent lockdown in China due to COVID-19, factory shutdowns, US economic sanctions on China, and China's early implementation of the Lunar New Year holiday.
In particular, there is growing criticism that the collapse of domestic parts manufacturers has also fueled this situation.
Even in the early 2000s, various electronic products were produced and small component manufacturers made various products. However, with the advent of smartphones, various electronic products were integrated into smartphones, and the demand for small component manufacturers decreased rapidly.
As a result, the current parts market is centered on large corporations, and the position of domestic small electronic parts companies is gradually decreasing, they are losing their competitiveness, and domestic small parts companies are going out of business.
In particular, this reality is that even if small parts companies are re-developed, the current The situation is such that there is no room for improvement.
The parts industry's position is that it is very difficult for small parts companies to operate in Korea, considering the considerable technological prowess of Chinese products, domestic labor costs, domestic demand, and other factors.
Here, it is almost impossible to find people in their 20s or 30s who can design MCUs, so finding developers is like looking for a needle in a haystack, there are no developers, and the market outlook is also bleak, making it difficult to foster small-scale electronic components.
Domestic parts manufacturers are saying that there is nothing they can do in the current situation, and that they have no choice but to either give up on orders from customers due to rising unit prices or hold out while waiting for the supply and demand situation to improve.
Industry insiders said that the parts shortage that began last year is now felt more difficult than it is now, and that these difficulties will continue until the second half of this year.
To overcome this situation, we need to reduce our dependence on China, and to do that, we have no choice but to foster small domestic electronic component companies, even if they don't have money, and they all agreed that strong support from the government is essential.