[News] Chip Supply Chain Sees Rush Orders Amid Tariffs and Inventory Replenishment

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According to a report by the Commercial Times, industries including display panels, IC design, memory, and optical communications are experiencing a surge in rush orders toward the end of the year and the Lunar New Year period. This uptick is driven by the nearing completion of inventory clearance and concerns over potential tariff hikes on imported goods following Donald Trump’s inauguration as U.S. President in January.

The Commercial Times, citing supply chain sources, highlighted that Wi-Fi chipsets are a major focus for restocking in the first quarter of 2025. China’s subsidy program for replacing old devices has depleted Wi-Fi inventories, necessitating new production runs. Additionally, increased router orders in China have exacerbated shortages of 2×2 Wi-Fi 6E chipsets. Chips such as PMICs (power management ICs) and ISPs (image signal processors) are also seeing a wave of urgent orders.

The report further notes that President-elect Trump’s proposal to impose tariffs ranging from 10% to 25% on imports from China, Mexico, and Canada is intensifying the pull-in effect in the supply chain. To mitigate potential tariff impacts, brands are shifting production to Vietnam and Thailand, which has led to longer shipping times and prompted companies to place additional orders to secure supplies for next year’s demand.

The Commercial Times also reports that display panel manufacturers are urging clients to pull in orders by December or January, warning that production delays after the Lunar New Year could result in material shortages and disrupt supply. This surge in early procurement could potentially push panel prices higher after the Lunar New Year, likely in February.

(Photo credit: The White House)