3 Consumer Electronics Stocks Worth Watching As Chip Costs Rise

Global consumer electronics stocks are caught between rising chip costs, political tussles over US factory subsidies, and fresh questions about sourcing from blacklisted Chinese suppliers. For investors, this mix of supply squeeze, pricing power, and policy risk can create both pressure and openings across the sector. This article focuses on how these cross currents touch three large manufacturers exposed to the latest chip headlines, and why some stocks may be positioned to benefit from higher device prices, changing supply chains, or shifting government incentives. Across the next sections, you will see three stocks from the screener that look positively exposed to the news.

Merry Electronics (TWSE:2439)

Overview: Merry Electronics is a Taiwan based manufacturer of audio components, power systems, medical devices, and related electronics that go into everyday products such as smartphones, wearables, speakers, hearing aids, and smart home gear for global brands. The company also provides cables, connectors, security systems, and software for hearing aids, giving it exposure across consumer, medical, and industrial applications.

Operations: Merry Electronics generates most of its business revenue from Taiwan at about NT$32.8b, with additional contributions from Vietnam (NT$12.8b), Shenzhen (NT$10.4b), Singapore (NT$8.6b), Thailand (NT$8.0b), and other regions (NT$1.8b), partly offset by NT$25.8b of inter segment eliminations.

Market Cap: NT$20.9b

Merry Electronics sits at the heart of the devices now seeing higher prices as memory chip shortages bite. This can support pricing power for core products such as microphones, speakers, and power systems supplied to major OEMs. The stock trades on a P/E of 16.8x, below both the Taiwan market and peer averages, while analysts expect faster earnings growth than revenue and have set price targets that indicate potential upside. At the same time, profit margins have compressed, the dividend is not fully backed by free cash flow, and earnings fell sharply year on year. Investors may wish to weigh valuation and chip exposure against execution, board independence, and dividend sustainability.

Compressed margins and a below market P/E hint that Merry Electronics could be priced for caution, while chip tightness supports its core products. It is worth seeing how the full risk reward picture stacks up in the 3 key rewards and 3 important warning signs (1 is major!)

Panasonic Holdings (TSE:6752)

Overview: Panasonic Holdings is a Japan based conglomerate that makes everything from TVs, home appliances and air conditioners to in flight entertainment systems, factory automation gear and EV batteries, supplying households, businesses and automakers around the world.

Operations: Panasonic Holdings generates revenue across a broad mix of segments, led by Energy (¥984.2b), Connect (¥1,380.3b), Smart Life (¥1,374.2b), HVAC & CC (¥1,312.4b), Electric Works (¥1,160.6b), Industry (¥1,167.3b) and Others (¥1,414.6b), partly offset by ¥744.9b of eliminations, with sales spread across Japan, the United States, Europe and the rest of Asia.

Market Cap: ¥9.1t

Panasonic Holdings is closely linked to the chip story in two main ways: it supplies batteries for EVs and energy storage, and it sells electronics and industrial systems that rely on memory and semiconductors. The current backdrop of higher memory prices and questions over US subsidy timelines adds complexity, but it also highlights Panasonic’s role in data center power systems, long life batteries, and secure devices such as its TOUGHBOOK line. Forecast earnings growth of 23.8% a year, exposure to large AI driven energy demand and recurring storage projects sit against a rich P/E multiple, recent one off losses and a volatile share price. The key consideration is whether the quality of these earnings and the breadth of Panasonic’s segments justify that premium as the chip cycle tightens.

Panasonic Holdings looks like an earnings story that many investors may be underestimating, with forecast growth and a rich P/E raising real questions about quality. See how the analyst forecasts for Panasonic Holdings could shift once one key risk is fully priced in.

Shenzhen MTC (SZSE:002429)

Overview: Shenzhen MTC is a China based electronics manufacturer that designs and produces LCD TVs and displays, network communication gear, smart audio visual equipment, IoT devices and a full range of LED chips, components and finished lighting products for home and commercial use.

Market Cap: CN¥34.7b

Shenzhen MTC provides direct exposure to Chinese consumer electronics and IoT hardware at a time when global memory shortages are lifting device prices and pushing buyers toward local suppliers. The stock trades below an internal estimate of future cash flow value. Earnings are forecast to grow faster than revenue and faster than the broader market, which suggests the market may not fully reflect its potential. However, earnings declined over the past year, profit margins have edged lower, funding relies entirely on external borrowing and the dividend track record is patchy. For investors who can accept share price swings and want to understand how chip supply tensions could influence its growth path, this setup may warrant closer examination.

Shenzhen MTC’s earnings story looks like it could be decoupling from the market, with growth forecasts and chip tightness yet to be fully priced in. However, the real twist sits inside the analyst forecasts for Shenzhen MTC

The three stocks in this article are just the starting point. The full Global Consumer Electronics Manufacturers screener surfaces 16 more multinational manufacturers with stories around chips, pricing power, and policy risk that could be just as compelling. Use Simply Wall St to identify, analyze, and filter for the specific catalysts and narratives that matter most to you so you can focus on the highest conviction opportunities in this global theme.

Take Control of Your Investment Journey

If Panasonic Holdings or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before Others?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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