Difficult situation of chip companies in Vietnam

In 2021, the distributor does not have enough components and laptops to sell. Currently, the amount of product is abundant but the demand from the market has passed.

Demand in the PC industry declined in the first six months of the year. Photo: X.Sang .

During the epidemic period, the demand for working at home increased sharply, promoting the need to buy laptops and install desktop computers. However, disruption in the supply chain creates a shortage of components in the domestic market for a long time. When the amount of goods stabilized again, customer demand was gone.

In the face of the decline in revenue in the first half of the year, chip manufacturers quickly updated the new generation to attract users to upgrade.

Demand dropped after the epidemic

Answering Zing at the launch event of Ryzen 7000 series processors in Vietnam , AMD representatives said that the lack of goods is the general situation of the whole industry in the period 2020-2021. "This is due to the impact of supply chain disruptions during the Covid-19 pandemic," an AMD representative said.

Meanwhile, another semiconductor manufacturer, MediaTek , shared that in 2021, there are batches of chips with a delivery time of up to 52 weeks in Vietnam. This means that when a manufacturer places an order, it takes about a year to receive the product.

After the epidemic period, the need to install computers and buy laptops is not much.

In 2021, global computer shipments will reach approximately 344 million units. This represents an increase of 13.5% last year.

A report from market research company IDC shows that difficulties are ahead for the personal computer industry. Contrary to double-digit growth in the same period five years ago, PC shipments in early 2022 decreased by 5.1%. IDC believes that this whole is falling into a downward spiral. The slowdown was recorded in the education and consumer sectors.

00:00 / 00:00LIPSTICK

Sharing with Zing, AMD Vietnam's representative said that the company's business situation in the first 6 months of the year was generally down. As a result, growth expectations are placed on products launching at the end of the year.

Meanwhile, a representative of a large domestic retailer shared that the inventory of CPU-based laptop products launched in 2021 is still very much. The reason given was that the goods arrived late, unable to meet the needs of customers. Therefore, the distribution unit is having to find a way to sell off and reduce the price to clear the warehouse for a new batch of goods.

Set expectations for new products

Before sales did not meet expectations in the first period of the year, semiconductor manufacturers quickly updated the new generation of products in Vietnam.

On September 30, AMD Vietnam launched the Ryzen 7000 series high-performance desktop CPUs. The brand representative said that the new product line will focus on gamers and content creators. As reported by IDC , this user group is still in high demand for new components.

The new Ryzen CPU series is expected to help AMD grow in Vietnam. Photo: AMD.

AMD's CPU line is the first consumer PC chip manufactured on the 5 nm process. At the same time, the new design helps increase single-core processing performance, which can compete well with competitors in the same segment from Intel . In addition, the AM5 socket design solves the problem of leg curvature that appeared in the previous generation. AMD is also committed to using this standard until 2025. Therefore, users can rest assured in the ability to upgrade and be compatible in the future.

AMD's product range has just launched including 4 chips with codes 7600X, 7700X, 7900X and 7950X respectively. The selling price of this product line in Vietnam is VND 8.2-18.6 million.

Meanwhile, Intel also updated its PC processor version to the 13th generation with the codename Raptor Lake. The product range of the "green team" includes 22 versions, spanning many segments. These chips will also soon be docked in the Vietnamese market in the near future.

Single-core processing performance and compatibility with popular software suites are still Intel's strengths. However, continuing to produce on the Intel 7 (10 nm) line makes the manufacturer far behind the competition in terms of semiconductor process.

In addition, a MediaTek representative shared with Zing that they have a good cooperation relationship with TSMC. At the same time, the company is also in talks with Intel for a future merger.