Nowadays, electronic products are very developed. As a component that drives the normal operation of products, chips play an important role. The absence of chips will directly make products not be on sale in market expectedly. With the development of technology, the chip industry has also been booming, therefore products that can be replaced with each other have gradually increased, which alleviates the dependence of manufacturers on a single chip manufacturer effectively.

Since the second half of this year, the demand for chips has been exceeding the supply. The Chipmaker such as Apple, which desires to enter its supply chain, is still facing a severe shortage of power chips. Due to the lack of products, the production capacity of chip factories, VARs, brand manufacturers and many other enterprises trapped in the supply chain is insufficient, which has a great impact on the entire market, including Bluetooth audio market.

1.Why is Bluetooth headset chip out of stock? 

Why is Bluetooth headset chip out of stock? There are many factors, the main reason is attributed to the insufficient production capacity of upstream fabs, which is affected by the situation of Coronavirus. The influence of the situation of Coronavirus on the market is not obvious in the first half year, but with the rebound of the market in the second half year, the sale of products continues to increase, and the demand for chips increases sharply, thus the shortage of chips is increasingly obvious.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

In addition, with the rapid growth of Bluetooth headset market, the demand for chips is increasing. Moreover, the full-series products of iPhone are no longer equipped with wired headphones, the demand for chips will lead to a new round of growth, which increases the demand for chips. There are also some other reasons, such as the relationship of international trade, which makes many manufacturers that face with some “possible stress” start to prepare goods and purchase goods to maintain an unstable demand in one or two years in the future.

With the rapid progressive increase of Bluetooth audio market in recent years, the demand level of Bluetooth chip is also increasing in market. Manufacturers of Bluetooth headset chip have been always in the stage of increasing production capacity. From “2020 Bluetooth market industry report” published by Bluetooth technology alliance, Http://www.52audio.com/ learned that the annual sale of Bluetooth audio transmission equipments reached 1.1 billion in 2019. The sale is expected to be 1.54 billion in 2024, which makes chip manufacturers need to produce and supply products constantly.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

By this year, due to the situation of coronavirus, the production supply of terminal products has declined, so the release of new products has been postponed. In the second half of the year, many new products show up suddenly. For example, Huawei, Samsung and other phone manufacturers have launched the newest iterative products. In addition, such as Devialet, OnePlus and other manufacturers have launched the first TWS headset, which injects new vitality for Bluetooth headset market.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

The demand for chips has increased sharply as products have been piled up on the market. As the impact of the situation of coronavirus is wide, other consumer electronic products face the same problem. The sharp increase of the demand of chips has caused a great imbalance between the production capacity of upstream fabs and demand under the situation of coronavirus, resulting in the shortage of chips on a large scale.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

Another data also shows that the sale of fake AirPods has reached 600 million in 2020 according to incomplete statistics of supply chain information, which accounts for a large number of the sale share of Bluetooth headset chip.

Furthermore, as the launch event of Apple comes to an end, the full-series products of iPhone are no longer equipped with wired headphones, which may make Android manufacturers that have similar problems also remove wired headphones. Therefore, Bluetooth headset market will appear a new round of growth. In order to cope with the coming changes, many manufacturers enhance their demand for chips further to improve the competitiveness in market in the future.

2.The status of Bluetooth headset chip

Due to the insuffient production capability of upstream fabs, chipmakers with the stock are waiting for a proper time, while chipmakers without the stock postpone delivery cycle endlessly.  According to the industry chain, http://www.52audio.com/ learned that the delivery cycle of some models of some famous leading chip manufacturers has been extended from 6-8 weeks to 16-20 weeks, thus the time exceed more than half, and there is a risk of jump ticket.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

There are also many interesting pictures about the fluctuation of chip market in Moments of Wechat, from which it can be seen that the shortage of the chip is large-scale to some extent.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

The shortage of products and the increase of price have become an inevitable outcome, although you have money, you couldn’t buy products successfully. The best news is that products have been in stock with the increase of price.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

Even excellent programmers have nothing to do without chips.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

Due to the situation of coronavirus, the production supply of terminal products of each manufacturers has declined in the first half year, and the release of new products has been postponed. In the second half year, a pile of products are on sale in market, thus the demand for chips increases sharply. Therefore, some people complain that 2020 is not easy and said, “customers don’t buy products although products are in stock in the first half year, while the demand for products surges, and there is a lack of products in the second half year.”

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

Some people express their own opinions as they are complaining. They think that the reasons why the shortage of the product is serious include: the ability to predict the future is lacking, many customers don’t have plans and they don’t want to place stock orders, the market demand and agents don’t match the information of original manufacturers.

3. How to ease the status of product shortage

Although the production capability of many original chipmakers declines due to the lack of the supply of upstream wafer in the overall situation, the most effective way for terminal manufacturers is still increasing supply-chain manufacturers that can be replaced with each other when the demand for chips exceeds the suppy of supply chain.

Emergency|The Production Capacity of Upstream Fabs Is Insufficient, Bluetooth Headset Chip Is Seriously out of Stock-askpower

Fortunately, after several years of development, domestic chip manufacturers have been flourishing. The strength between manufacturers and the performance between products are gradually minishing. Therefore, many products can substitute for each other. http://www.52audio.com/ also have specifically made a summary of 63 master chip products launched by 22 original manufacturers and  a summary article of 117 charge box power management IC launched by 21 famous brands. It also summarized 44  wireless charging receiver chips launched by 23 brands to contribute to Bluetooth headset market.

4. The impact of chip shortage

In terms of Bluetooth audio market nowadays, the development trend of it will continue to rise, thus it is very potential in the future. However, the industry insider believe that the insufficient production capacity of upstream wafer will continue to the middle of 2021 and will then begin to ease, which is likely to affect the sale of Bluetooth headsets to some extent. However, it is only likely to be a small obstacle in the overall situation and can’t affect the increase of the overall sale of Bluetooth headsets in market.

Also, with a new round of rapid development of audio market, more and more enterprises will certainly enter the market to compensate for the lack of supply of supply chain in market. For terminal consumers, the effect is little because the existing products in market can already satisfy them.