The chip deficit hit Yamaha's music tool production

The chip deficit hit Yamaha's music tool production

Speaking on Nikkei CNBC, President Yamaha Takuya Nakata stated that the global chip deficit had also affected the company's electronic music production unit: some components had succeeded in finding a replacement, but the impact had been negative for a number of products.

Mr. Nakata admitted that, in the new environment, chip manufacturers had actually increased production, but they generally preferred to increase the production of newer, more profitable components, while Yamaha needed simpler and more scarce solutions, and the situation was exacerbated by a fire at Asahi Kasei Microdevises, one of Yamaha's suppliers, in 2020.

During the financial year ended 31 March, the company reported that the chip deficit could continue for the following year, but that Yamaha's annual revenue increased by 9.5% over the reporting period to $3 billion.

Mr. Nakata also noted that the company had generated a high demand for pianos in China — expensive hobbys during the pandemic locodowns were also relevant here.