Earlier this month, three auto chip dealers were fined a total of RMB 2.5 million for inflating the price of auto chips.
After announcing earlier this month that it had fined three automotive chip distributors for price gouging, China's market regulator today announced a penalty decision against one of the companies.
Shanghai Qiete Electronics Co sold some automotive chips at a significant markup of up to 4543 percent when the purchase price of the chips was basically stable, according to the decision announced by China's State Administration for Market Regulation (SAMR).
The company purchased NXP's automotive chips on May 26, 2021, at a price of RMB 9.53 per chip. It sold them on June 9, 2021 for RMB 442.48 per chip for a quantity of 2,700 chips, a difference of RMB 1,169,000, a markup of 4543 percent, the decision said.
The SAMR fined the company RMB 500,000 ($77,400), according to the decision.
Earlier this month, the SAMR fined three automotive chip distribution companies a total of RMB 2.5 million for inflating the price of automotive chips.
According to an announcement on the SAMR's website, the three companies are Shanghai Qiete Electronics Co, Shanghai Chengsheng Industrial Co, Shenzhen Yuchang Technology Co.
Next, the SAMR will continue to pay close attention to the price order in the chip sector, strengthen price monitoring, and crackdown on illegal acts such as hoarding and price gouging to maintain good market order, the announcement said.
The SAMR said in a Q&A at the time that the shortage of automotive chips has led to a significant decline in the production and sales of cars in China, while at the same time, some traders maliciously snapped up chips, hoarding and price gouging, causing the price of some automotive chips to continue to rise.
Some chip prices rose 3-10 times, and some even rose 30-40 times, seriously affecting the orderly production and healthy development of China's automotive industry, the SAMR said.
Chinese market regulator fines three auto chip dealers for price gouging
(Photo source: Unsplash)
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