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The lack of chips to meet the demand of the electronics industries is affecting production in Brazil
The worldwide shortage of chips has for some time been forcing electronics industries in Brazil to make partial stoppages in their production. In the last month, 15% of the manufacturers of devices such as cell phones, notebooks and televisions had to stop part of their production due to lack of electronic components.
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According to a survey carried out by Abinee (the association that represents the sector) and revealed last month, this number corresponds to the highest percentage of forced stoppages since the association began questioning its members every month about the impacts of the supply crisis of chips and other components.
Furthermore, when considering that another 36% of the companies registered delays in production or deliveries due to the shortage of chips and electronic components, it can be said that half of the industries had their operations affected in the month of December, caused by the supply of the input that did not meet the demand.
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Seven out of ten electronic device industries that use semiconductors in production, that is, 73% of them, are having difficulty finding the chips on the market. Half of that number expects that, by the end of 2022, the supply of inputs will be regularized.
In the case of automakers, the lack of semiconductor chips proved to be the biggest production bottleneck in the lines of electronic devices. However, unlike 2021, when automakers had to completely stop their production on several occasions, so far this has not proved necessary for any company in the segment.
Consequences of missing chips
According to Abinee's research, 26% of the industries in the electronics industry currently have stocks of components and raw materials smaller than normal. In addition, 76% of companies still mentioned higher than usual pressure from material costs, which affects the segment more broadly.
The Abinee survey also informs about the difficulties of 35% of the companies in obtaining the release of imported cargo due to the standard operation of the Revenue auditors. Inspectors are delaying the clearance process at ports, as the performance bonus that was paid to these workers is back in effect, resulting in the worsening of production delays in an industry sector highly dependent on imported components.
The association also stated that the disorganization caused by the Covid-19 pandemic in production chains will continue to demand attention in 2022, considering that the lack of semiconductor chips and other components is not expected to be resolved. In addition, there are logistical challenges, such as expensive freight rates and difficulties in reserving both containers and space on freighters.
Despite the obstacles, most manufacturers are still optimistic about sales growth this year. According to the survey conducted by Abinee in November, 69% of companies expected to do more business in 2022 than in 2021; now, 67% of them hold that prediction.
