Module manufacturers are experiencing operational difficulties as they face rising raw material costs and challenges in securing component supplies.

According to the module industry, which manufactures electronic components, raw material prices have recently increased by 30-40% compared to the previous year. Furthermore, even this limited availability is affecting product manufacturing.

An official from a module manufacturer stated, "Recently, we could not secure components domestically, so we looked into sourcing from overseas, but the overseas situation was equally difficult," adding that "domestic component supply conditions are actually comparatively better."

The official further noted, "Some companies have also suffered damage from purchasing counterfeit components, including parts salvaged from boards discarded 10-20 years ago, grade B components, and even counterfeit components shaped like capacitors."

The official stated, "Even securing such components has become difficult, so we are currently unable to manufacture products, making product supply equally challenging."

Consequently, a decline in sales compared to the previous year is unavoidable.

This situation is being analyzed as resulting from the global COVID-19 impact, with major component manufacturing centers in Vietnam and Malaysia entering shutdowns, preventing smooth component production.

Additionally, semiconductor supply constraints have intensified since late last year, with the entire industrial semiconductor sector, including automotive semiconductors, experiencing severe supply shortages.

Particularly, fires at Renesas in Japan and TSMC in early this year further aggravated these component shortages.

Meanwhile, in the case of automotive modules, there are reports that due to automotive semiconductor shortages, production is not proceeding smoothly, and vehicles can be delivered faster only if optional features are excluded.

Facing such circumstances, the electronic module manufacturing industry states there are currently no solutions available, and they have no choice but to wait until the COVID-19 impact subsides and semiconductor component supplies normalize.

Additionally, the module manufacturing industry experiencing these difficulties has emphasized that necessary support, such as tax incentives, is urgently needed.