The COVID-19 pandemic has hurt almost all major industries, and the electronic chip manufacturing sector has been no exception. This vulnerable situation is due to the delays in raw material sourcing, increase in border checks, as well as higher costs associated with transportation. This chip shortage has had an adverse impact on several sectors, including smartphone production, household appliances, and automobiles.
Moreover, the insufficiency of electronic chips has presented a major opportunity to new and emerging firms. Certain Chinese firms are looking to take the chance by ramping up their production. This blog discusses the renewed efforts of Chinese chipmakers and how they could help resolve this shortage.
Determined Efforts from Chinese Firms
Chinese chipmakers, including Corigine, are looking to increase their production rapidly. They are ramping up the capabilities related to research, development, as well as production. These firms also plan to intensify their marketing efforts in order to promote their brands to a wider audience. This move could prove to be a major challenge because the chip industry continues to be dominated by firms like Qualcomm and Samsung.
"Instead of slowing down, we are actually gonna double down our investment. That's not only heavy on R&D but also sales and marketing. And to branch new market segments, market share, as well as the new market product. We think this is an opportunity," said Lu, president and CEO of Corigine.
Chinese firms would thus have to deliver high-quality products quickly and efficiently. They would also need to improve their brand awareness so that consumers around the world are aware of their offerings. These firms also have certain structural benefits that could prove to be of great help. First, the Chinese manufacturing industry has access to a large labor workforce. Second, the costs associated with production are among the lowest in the world. And lastly, the Chinese government also provides a favorable regulatory environment. These firms could therefore take advantage of these points to ramp up their production quickly and play a pivotal role on a global level.
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