The global chip shortage began at the end of 2020 and has only grown worse. A recent Goldman Sachs research report notes that as many as 169 industries worldwide are affected to some degree by the chip shortage, including steel products, concrete production, air conditioning manufacturing, and electronics. The worsening global chip shortage makes price increases inevitable. “Can’t buy” and “can’t afford” have become common dilemmas for many downstream companies. One industry practitioner reports that a German-made chip they use cost 3.5 yuan last year and has risen to 16.5 yuan this year — a fivefold increase.

Chips are thus closely tied to the development of every industry and are the core foundation of high-end manufacturing. Without chips, the development of many high-end industries in China would be constrained. China has therefore accelerated its own chip R&D to achieve technological breakthroughs in chips as early as possible.

China now has many excellent semiconductor companies across chip design, manufacturing, packaging, materials, and equipment, such as HiSilicon, SMIC, Jingrui, and SMEE. Last year Huawei released its first 5nm Kirin 9000, and this year SMIC will build China’s first FinFET process line in Shanghai.

The rapid development of chips drives the entire electronics industry chain. Demand for automation upgrades among chip-related electronics manufacturers is therefore clear, and the trend toward automated manufacturing equipment is inevitable. Demand for related automated production and inspection solutions keeps growing, and consumer electronics manufacturers are increasing investment in automation upgrades.

Every generation of modern technology is created to provide richer functions and applications, and Wanzhi Automation is no exception. Since Wanzhi Automation was founded in 2014, we have worked in the automatic labeling and packaging line field for many years. With rich R&D experience and a complete product portfolio, Wanzhi Automation helps customers deploy labeling and packaging lines at lower cost and more efficiently, achieving high-efficiency capacity and responding quickly to ever-changing market challenges!

 To learn more about our automatic labeling machines, visit www.wanzhiauto.com or call 400-8860822.