Is the Microprocessor Shortage Impacting Sewing Machine Stock?

As many industries continue to struggle following the pandemic, another big setback has been the availability of microprocessors needed to manufacture computerized devices. However, the blame for the shortage is not related to the pandemic and is the result of a massive fire that occurred in March of 2021 at one of the largest microprocessor plants in the world.

In fact, the scarcity of this needed computer component has put a halt on the automotive industry and has the potential to slow the production of electronic devices including computerized sewing machines.

Adding to the potential shortage of microprocessors, the pandemic drove the demand for sewing machines as more people tried their hand at making masks in the comfort of their homes.

In this article, we will discuss:

• The worldwide shortage of microchips
• High demand during a period of low supply
• How sewing machine manufacturers have been impacted

The Worldwide Shortage of Microchip Manufacturing

The rate on how microchips are being manufactured and transported goes back before the fire broke out at a plant in Japan. Spurred by the US-China trade war under the Trump administration, companies like Huawei started hoarding microchips for fear of running out of supplies.

But the trade war wasn’t the only event that led to companies stocking up on microchips. A drought in Taiwan in Spring of 2021 led to a decrease in supply because large amounts of water must be used to clean factories and wafers (a semiconductor material).

Microchip manufacturers are also putting industries that use legacy node technologies such as the industrial and automotive industry in line because the microchip manufacturers are focusing on chips for smartphones, cloud providers, PCs and cryptocurrency.

High Demand During a Period of Low Supply

On top of the low supply of microchips, there is a high demand from several industries. As people stay at home during the pandemic, there has been an increase in demand for laptops, smartphones, webcams and game consoles as people began to work and students attend classes inside their homes.

Add to that is a drastic increase in cards that can mine cryptocurrency. Building microchips is also easier said than done. It is said that microchips are one of the hardest and most expensive to manufacture. It takes years to build a facility that manufactures microchips and billions of dollars to fund it. Manufacturing a chip alone takes more than three months to finish.

Adding to the frustration is the delay in the supply chain. On top of supply chain disruptions, they also experience delays in land, air and sea transportation. A combination of the pandemic restrictions on manpower, increase in imports, less courier capacity, shortage of empty containers and lack of space makes receiving supplies even scarcer than usual.

How Sewing Machine Manufacturers Have Been Impacted

An annual report released by the sewing machine manufacturer Janome showed that Taiwanese part suppliers have dealt with some issues. Parts production was delayed and had logistical issues, but not to the point that they had to shut down, thus having minimal impact on their part supplies. They are also reinforcing overseas production hubs in Taiwan and Thailand.

Several sewing machine brands even managed to launch new products. Brother announced a new line of sewing machines or 2022 including two quilting sewing machines and a 6-needle embroidery machine, with Singer and Husqvarna following suit with the announcement of machines that will have Wi-Fi and color touch screens.

Despite these issues, the manufacturing of computerized sewing machines has not been impacted at the same level as other industries and continues to deliver sewing machines for sewers of all levels!