01 STMicroelectronics raises for the third time
On 27 September, STMicroelectronics issued another notice stating that the current shortage in the semiconductor supply chain continues to severely affect our industry, with no short-term signs of recovery.
With some key supplies in the supply chain (foundries, raw materials, logistics ......) ST will increase prices for all products, including existing inventory, in the last quarter of 2021 (Q4).
Details of the price increase will be shared by ST's head of STMicroelectronics in the coming days.
This is the third time that ST has issued a price increase notice. Back on 1 January this year, ST had already announced a wave of price increase notices, with ST stating that it had decided to increase the prices of all its product lines with effect from 1 January 2021. On 1 June this year, ST issued another price increase notice, announcing price increases for its entire product line.
As we all know, ST's MCU series products are scarce and expensive in the supply chain. Judging from ST's three price increases in one year, the scarcity of chip products may be even higher after this round of price increases.
02 Xilinx: A 10% to 20% increase on November 1st
Recently, Xilinx issued a price increase letter stating that the global economic situation caused by the COVID-19 pandemic has created significant challenges and impacted the global electronics supply chain, affecting all of us as suppliers and customers. The industry-wide semiconductor shortage has resulted in unprecedented hurdles as we work to meet our customers' needs. Subsequently, we worked with our suppliers to secure capacity and maintain our supply to meet our customers' current and future needs. As a result, we faced significant cost increases. To offset these increased costs, we have increased prices on all current and future orders, all quotes, and all shipments on and after November 1, 2021.
Products affected by growth：
1、10% increase on all VersalM series；
2、20% increase in all other products.
3、October 2021 Notice of percentage increase and affected products (this letter)
4、1 November 2021: Price increase takes effect.
03 Molex: Increase of more than 7% on October 1
Since last month's price increase, Molex has issued another price increase letter, in which Molex stated that it could no longer afford the pressure from external cost increases at this time. A portion of the cost increase has therefore had to be passed on to certain specially priced products.
As a result of our discussions, we will be increasing the prices of all our specially priced products by at least 7% from 1 October 2021. We take our business with you very seriously and do not decide to increase prices lightly. And in the face of global economic headwinds, we remain fully committed to exploring options to counteract continued inflation.
Please note that the following adjustments will be made to future orders.
1. The new prices will be effective on 1 October 2021. 2.
2. Orders shipped before 1 October 2021 will be transacted at the current price.
3. All shipments made on or after 1 October 2021 will be invoiced at the new prices, regardless of the specific order entry date.
04 ON Semiconductor sends another price increase letter
On September 10, a price increase letter from ON Semiconductor was circulated in the market stating that due to increasing raw material, manufacturing and logistics costs and an oversupply of capacity, we will be increasing prices for some of our products and that this price increase will take effect in early October and that the new prices will apply to new orders and existing backlog orders.
It is understood that this has been the second price increase letter sent by ON Semiconductor this year, as early as May this year, ON Semiconductor has issued a price increase letter that said that since July 15 to adjust the third quarter chip prices.
This year, ON Semiconductor's power management ICs, IGBTs, Mosfet, and other products have lengthened their delivery schedules across the board, at the same time, diodes, transistors, optocouplers and CMOS sensors are also out of stock to a certain extent, with some of their products already having a 52-week lead time.
05 MediaTek: Wi-Fi series chips rose by more than 30%
According to industry sources, several Chinese and Taiwanese IC design companies are preparing to raise chip prices from the fourth quarter of 2021 to reflect rising manufacturing costs, according to the Business Times.
In particular, MediaTek plans to increase the prices of some of its chip solutions from November 1, especially for Wi-Fi solutions including the MT7668 and MT7663 series, by up to 30%.
06 REALTEK: 15% increase on 1 October
Not only MediaTek the current long and short material problem is quite serious, especially the Netcom-related chip supply gap is still quite large, in the demand remains strong, coupled with UMC, TSMC and SMIC successive increases in foundry prices, REALTEK following September has been for some Wi-Fi chip up 10 ~ 15%, October 1 is to increase all other chip offers, also up to 15%.
07 Broadcom: A 20% increase from October
In addition, Broadcom also raised chip prices from October, up to 20%, while the market rumors that Intel also notified customers to raise the price of Wi-Fi, Ethernet and other chips, which also makes REALTEK, AsiaInfo and other up more firm.
08 ASMedia: 20% increase in its entire product line from January next year
There is also the 2021 rate of increase compared to other IC design industry smaller ASMedia, because the end customer demand is still maintained high-grade, order visibility has been to the end of 2022, coupled with TSMC jumped 20%, so also decided in January 2022 will be completely passed on costs, the whole line of products also rose by more than 20%.
09 ASPEED: Further increases to be made in Q4
In addition, in response to TSMC's price increase, after a 10% increase in May, the price will be further increased in the fourth quarter.
10 Novatek: Increase in SoC prices by around 10-20%
It is worth mentioning that the recent weak demand and prices because of the panel, the market pessimistic expectations have been difficult to raise the chip offer, and may even fall back to the drive IC industry. It is understood that the Novatek against the trend will first raise the price of SoC in October, an increase of about 10 ~ 20%. And August has first raised the drive IC prices, is planned for November up 5 ~ 10%, its rise also reflects the overall demand trend is not as pessimistic as the market expected.
11 CWE: raised by 8%-25%
Recently, semiconductor packaging material supplier CWE issued another price increase notice, from October 1, 2021, including the etching method of the quadratic plane pinless package (QFN) and quadratic plane pin package (QFP) with the wireframe, increased by 8 to 25%. Among them, the largest increase of 25% is for the QFNs of CWEs.
For the reason of price increase, CWE pointed out that all kinds of capital communication, network communication and other products demand is strong, coupled with the wireframe upstream raw material alloy copper supply shortage.
In addition, due to the continued tight power supply, Suzhou has recently implemented power restriction measures since 26 September. CWTC, a subsidiary of CWE, announced that its Suzhou plant would temporarily suspend work until 30 September in line with the local government's power restriction policy and offered countermeasures, including closely observing the subsequent development; after the power supply is restored, it will try its best to adjust manpower production to reduce inconvenience to customers.
12 UTC Technology: Full range of products to be increased from 22 September
On September 1, UTC Technology issued a price increase letter stating that due to tight production capacity, raw material prices continue to rise, resulting in our costs also continue to increase. To ensure the continuous and stable supply of our products, the prices of our product models have been adjusted since September 22, 2021.
According to public information, Yosun is a company dedicated to the R&D, design, manufacturing, packaging, testing and marketing of analog ICs and discrete components. From product development, design, manufacturing, packaging, testing to brand marketing, it has fully mastered its independent capabilities at every key point to achieve capacity guarantee and technological autonomy, fully demonstrating its corporate competitiveness.
IC design industry said TSMC, UMC and other foundries, as well as a number of IC design companies around the world in the fourth quarter to 2022, is still strong to raise prices, and can successfully pass on costs to see the end market demand is still strong, such as mobile phones, automotive and other semiconductor chip usage doubled, and the 5G generation to bring more applications, long and short material problems are still under control, can continue to raise product prices of the industry, the current key products supply gap is still quite large.
In addition, the time point of a large number of new wafer foundry capacity opening falls after 2023, so the semiconductor market in 2022 will still be more demand than supply, with little chance of reversal. However, under the ultra-high base period in 2021, the operation of high operators will be significantly reduced, but will still maintain a high point.