China’s Chips Shortage Likely to Result in Price Hike for Electronics

Workers producing LED chips at a factory in Huaian city, in China's eastern Jiangsu Province, on June 16, 2020. STR/AFP via Getty Images

As China seeks to boost its domestic chipmaking capabilities, an increase in demand for mini LED chips that are used in manufacturing laptops, tablets, and other electronic devices has crowded out chipmakers’ ability to produce older, conventional LED chips used for display screens.

This shortage has already resulted in price hikes for the conventional LED chips.