Musical instrument maker Yamaha runs out of chips

Speaking to Nikkei CNBC, Yamaha President Takuya Nakata said the global chip shortage was affecting the electronics maker’s musical instrument division. Some components have been replaced, but for some products the effects have been negative.

Image source: yamaha.com.

Mr. Nakata acknowledged that under the new conditions, chipmakers have indeed increased production, but have generally opted to take the next step in producing new, more cost-effective components. However, the Yamaha needs simpler and rarer solutions. The situation escalated with the 2020 fire at Asahi Kasei Microdevices, one of Yamaha’s suppliers.

Over the past year, the shortfall amounted to about 35 billion yen (253 million yen). I think we could lose around 30 billion yen in this fiscal year. When reporting results for the year ended March 31, the company said the chip shortage could continue into next year. Nonetheless, Yamaha’s annual revenue per share grew 9.5% and distributed $3 billion.

Mr. Nakata noted that the company had been saved from the high demand for pianos in China for expensive hobbies that have become commonplace today, which were also at stake.

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