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Global chip shortage threatens e-cigarette: slow product release cycle and increased cost

2021/08/23|Knowledge

According to foreign reports, from electric vehicles to smart refrigerators and electronic cigarettes, the world is experiencing a slowdown in global manufacturing due to the shortage of semiconductors, which continues to delay the release of new products and the production cycle.

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Goldman Sachs analyzed that the shortage of chips directly affected 169 different industries, especially the automotive industry. South Korean electronics giant Samsung also announced the strategy of giving priority to chips for more demand products. The company said that although it is the world's second-largest smartphone manufacturer, it has to delay the release of new products due to the shortage of chips. With the extension of time, the manufacturer's expenses will increase, which may raise the price of consumer electronics.

Semiconductors can be found in almost all modern electronic devices, including electronic cigarettes, in which chips can provide a smarter, safer and easier to use experience. Among other things, the chips in the e-cigarette are responsible for power control, current stability, temperature monitoring, suction counter, steam identification and control of suction settings. The addition of these core components means that e-cigarettes are now more reliable, new users can use them, and provide a better overall e-cigarette experience.

For chip manufacturers, the shortage means that as a large backlog of orders continues to grow, supply will not exceed demand in the coming months or even years. Looking ahead, manufacturers in all walks of life, including e-cigarettes, will experience a certain degree of interruption. In the coming months, there may be slower product release cycle, increased cost and limited supply.

With the shortage of chips, consumers' demand for e-cigarettes continues to grow. According to a report by grand view research, the e-cigarette industry is expected to expand at a compound annual growth rate (CAGR) of 28.1% from 2021 to 2028, allowing onlookers to guess whether this emerging industry can maintain its growth momentum.

Philip Morris International (PMI), the world's largest tobacco company, has shifted its traditional business to heating non combustion equipment since 2017. Like all electronic cigarettes, PMI's iqos depends on semiconductors. The whole industry reflects this dependence, and the whole space is paying close attention to the growing chip shortage.

From the current situation, there is no sign that the chip shortage is over, and the supply shortage in all links of the supply chain is increasing. Due to the scarcity of products and the increasing uncertainty faced by consumers, they tend to take additional precautions because the world seems likely to experience a global shortage of cars, mobile phones and e-cigarettes.

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