Parts squeeze hurting demand: Lite-On

NEW UPTAKE: An important cause of falling component availability and rising prices is demand from the fast-developing automotive electronics sector, CEO Warren Chen said

Taipei Times
Date: Jun 25, 2018
By: Ted Chen  /  Staff reporter

Electronics supplier Lite-On Technology Corp (光寶科技) gave a dim outlook for the second half of this year, saying a persistent shortage of key components is likely to dampen demand.

While sales in the second half are expected to exceed takings in the first six months, it could take up to two years for the global technology sector to resolve lingering shortages in semiconductor materials and passive modules, Lite-On chief executive Warren Chen (陳廣中) told shareholders at the company’s annual general meeting on Friday last week.

The shortages are caused by growing demand for automotive electronics, Chen said, adding that end-user product pricing would only go up as businesses pass higher component costs on to consumers and drive down spending.

It would also be more difficult for Chinese manufacturers to make up the shortfall as Beijing tightens environmental standards, he said.    [FULL  STORY]

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