Price increase becomes a helpless move for manufacturers

In the case of general tight supply in the semiconductor field and serious shortages of related products, the imbalance of supply and demand in the semiconductor market is particularly obvious, which has gradually caused the "domino effect." From wafer price increase to material price increase, to PCB (printed circuit board) price increase, packaging and testing price increase, and finally to chip price increase...the chip increase caused by materials, wafers, packaging and testing in the upstream of the industry chain The price wave is gradually spreading throughout the industry.
 
Starting from the fourth quarter of 2020, price increases in the semiconductor field have continued, and news about the tight production capacity of chip foundries in 8-inch wafer fabs is endless. At the end of 2020, the shortage of production capacity has extended to 12-inch wafers. Due to the tight wafer production capacity and strong market demand, many manufacturers have increased the quotations of chip foundry products, and chip price increases have become a helpless move for major manufacturers.
 
At the beginning of 2021, not only did the chip price surge show no signs of fading, but it has become more intense. According to incomplete statistics, since 2021, up to now, there have been more than 40 semiconductor manufacturers that have raised or are about to raise prices.
 
Among them, Samsung CMOS image sensors have increased their prices by 40%; Renesas Electronics has increased the prices of some analog and power products, while existing and new orders will be processed at the new prices; STMicroelectronics has increased the prices of all products; China Microelectronics has raised its product prices by 10%; Ruineng Semiconductor will raise the prices of some products; Xilinx will raise the prices of some products by 25%; UMC plans to raise its quotations again by up to 15%; TSMC automotive chips The subsidiary Advanced Integrated Circuits (VIS) is also considering a price increase of up to 15%; the price of Deyi Microelectronics embedded memory control chip has been increased by 50%, becoming the product with a significant price increase among many products. In addition, many manufacturers such as Diodes, Fuman Electronics, Microchip and so on have issued price increase notices and taken price increase actions. This wave of chip price increases seems to be overwhelming.
 
Starting from January 2021, many chip companies have increased the ex-factory prices of their products, with a general increase in the range of 10% to 15%. In 2021, the average price increase of all chip products will exceed 20%, and the prices of some products will even directly double.