An Open Letter about Massive Shortage of Materials

As is known to all, the simultaneous growth of various demands, all industries generally predicted that the shortage of wafers will continue until the third quarter of next year.  The main reasons include 1. huge increase in demand for power management chips from 5G mobile phones; 2. the epidemic has led to a substantial increase in the demand for technology products such as remote work, education, and medical care; 3. the demand for automotive electronics has also increased significantly.

A shortage in production capacity of wafer in 2021causes the all chips will increase price. At present, CPU, touch panel controller and audio controller are in short supply, the spot prices of DRAM and flash memory have risen substantially, which leads to the price of the motherboard has increased by more than 10%.

Under the impact of COVID-19, people work and study at home, the demands of laptops, tablets, and TV have boomed up. From the third quarter 2020, the supply of LCD screens also began to be in short supply due to the limited production capacity, especially 15.6-inch LCD screens. As for now，the price of 15.6″ LCD screens has risen by more than 200%, and we are unable to purchase enough quantities of 15.6″ LCD screen.

There is no doubt that all shortages of materials have brought a series of challenges for the POS industry. In the last 8 months, Sunany has already endured most of the cost of price increasing. We’ve received the price increasing notices from chip suppliers, LCD screen suppliers and materials suppliers recently. In this case, Sunany has to increase the prices of some models, and these models may not deliver in time according to your schedule.  Under the pressure from all relevant industries, Sunany hopes to receive understandings from yours, and conquer the difficulties with you.

Best wishes
Sunany Team