China’s chip production reaches 139.9 billion, and the chip shortage will be resolved in 2022

June 30, 2021

GL-COM is specilized in EPON GPON XPON ONU, ONT, OLT, Switch, WDM, Pigtail, Patch Cord, PLC Splitter.

As we all know, one of the most essential part of a PON ONU is chip.

Affected by the epidemic in 2020, the production capacity of global chip manufacturers has dropped significantly, which has also exacerbated the problem of chip shortages.

In the first half of this year, the mainland's chip production capacity reached 139.9 billion, a sharp increase of 48.3% over 2020. Especially in May of this year, the chip production capacity directly broke the historical record of the monthly production capacity of domestic chips.

The reason why China is able to go upstream under the background of the world's chip shortage is due to the proficiency of mature chip manufacturing processes. At the same time, the chip gap in the fields of home appliances, automobiles, and technology is large, and the main demand is mature chips.

Therefore, the country took the opportunity to take advantage of the manufacturing advantages of domestic chips to expand a wave of production capacity, thus realizing the replacement of chip gaps and the breaking of production records.

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