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The following article was published in our article directory on April 20, 2011.
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Japanese earthquake caused the shortages of LG appliance chip and made the price of product risesed

Article Category: Business

Author Name: xia zihui

Beijing time 20 April morning news, LG electronics said Tuesday by Japan, earthquake and tsunami that influence, this company's household appliances department has been in short supply problems encountered chip, the company will find alternative chip suppliers.

LG appliance department LiYongXia (Lee him self before the President sound) - ha, said: "we have the semiconductor components appliance 70% to 80% from Japanese manufacturers, but we will push supplier diversity." He expresses at the same time, the next two to three months, the recovery from the earthquake in Japan will help the global chip supply chain normalized. LiYongXia says, LG electronics will purchase more from hynix has semiconductor chip.

LG electronics previously half of the chip supply comes from Toshiba. Toshiba said Monday in northern Japan, the company has been part of a factory Hiroshima resume production. But LiYongXia said: "even if Japan's situation had improved, we will promote the diversification of supply chain."

Japan after the earthquake, the widespread concerns about electronic many industries such as supply chain problems. Global technology giants components suppliers to Japan has a lot of dependency.

LiYongXia says that because of raw material costs, LG electronics recently will put electrical appliances product price rise 5% to 10%. He said: "the raw materials costs, including the price of copper and iron and steel, and recently, up 20% to 30%, rise speed faster than we expected. Due to rising raw material costs faster than we cut costs speed, we can only follow the global price trend."
America's HuiErPu and Sweden yilaikesi to wait for electrical home appliances manufacturers had already announced on product price hikes, in response to rising prices of raw materials.

But LiYongXia says that because of higher margin products, such as energy-efficient appliances and networking appliance launch, LG electronics appliances department's performance this year will continue to improve. Last year in the fourth quarter, from cell phone business underperforming market for flat-screen televisions and the influence of weak demand, LG electronics appeared net losses.

LiYongXia says that because of raw material costs, LG electronics recently will put electrical appliances product price rise 5% to 10%. He said: "the raw materials costs, including the price of copper and iron and steel, and recently, up 20% to 30%, rise speed faster than we expected. Due to rising raw material costs faster than we cut costs speed, we can only follow the global price trend."
America's HuiErPu and Sweden yilaikesi to wait for electrical home appliances manufacturers had already announced on product price hikes, in response to rising prices of raw materials.

But LiYongXia says that because of higher margin products, such as energy-efficient appliances and networking appliance launch, LG electronics appliances department's performance this year will continue to improve. Last year in the fourth quarter, from cell phone business underperforming market for flat-screen televisions and the influence of weak demand, LG electronics appeared net losses.

Keywords: China Machinery parts, Water Valves Manufacturer

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