The shortage of raw materials, parts and chips, cargo ships, docks and transportation staff, and other challenges mean that the electronics industry has been struggling to keep up with market demand since the pandemic began. But as consumers and businesses increase their demand for electronic products, there have been more orders for connectors than ever before.

Since 2020, the backlog of orders in the connector industry has doubled from 6 weeks to 12 weeks. In 2020, the final backlog will be US$8.021 billion (six weeks). As of the end of September 2021, the backlog amounted to US$19.262 billion. This is an amazing increase of 11.244 billion US dollars, reaching 140%!

According to reports, due to insufficient supply of semiconductors, global automakers are in trouble. Now, a new supply crisis has emerged, further impacting the automotive industry. In late October, the European Automobile Manufacturers Association (ACEA) and 11 other industry associations issued a severe warning on the shortage of magnesium materials: Unemployment will follow."

Magnesium can enhance the strength of aluminum and is a key raw material for the manufacture of aluminum alloys, which are widely used in automobile production. China has a dominant position in the global magnesium industry, but due to China's continuing energy crisis and curtailment measures adopted, magnesium production has stalled in September and October. On the one hand, China has to work hard to meet the soaring global demand for its magnesium products, and on the other hand, it has to reduce the use of coal.

Since China's magnesium production accounts for about 90% of the world's total, production restrictions will have a rapid ripple effect on the supply chain. The EU is particularly dependent on China in this regard, and about 95% of its magnesium supply comes from China.