Semiconductor Manufacturers Raise Prices & Indicated Product Line Price Increases

By: SiliconExpert on December 31st, 2020

As a direct impact from COVID-19, the semiconductor industry supply chain, including semiconductor wafers, foundry, and packaging, is facing a shortage of raw materials that is directly impacting production capacity. Several Semiconductor manufacturers have been forced to raise their prices to complete product production. Such manufacturers include but not limited to NXP Semiconductors, STMicroelectronics, Diodes Incorporated, and Renesas Electronics.

NXP Semiconductors

On November 26, NXP Semiconductors, the leader of automotive chip manufacturer, announced to its customers that its products will have a price increase and this will cover all NXP products.

As a result of the shortage of products and the significant increase in the cost of materials used to manufacture its products, NXP must increase the prices of all products to ensure supply of materials and services to complete product production.

Renesas Electronics

On November 30, Renesas Electronics, a global leader in microcontrollers, analog, power, and SoC products, announced to its customers that its products will have a price increase effective January 1, 2021, and will affect some legacy analog and power products. This is due to the increase in raw material and packaging costs. Renesas Electronics also explained that the recent increase in inventory costs and the risk of product transportation has forced the company to raise prices to ensure that these products can continue to be put into production.

STMicroelectronics

STMicroelectronics, a leading Integrated Device Manufacturer, announced to its customers that its products will have a price increase for all its product lines starting January 1, 2021. This price increase is due to two factors: 1) strong demand for their product and 2) many of their material suppliers struggling to meet the need which has led to increased costs and aggressive commercial terms. With this situation, ST will allocate capacity based on its customers’ firm orders and demand forcasting to maximize production and operational efficiency.

Diodes Incorporated

Diodes Incorporated, a leading global manufacturer and supplier of high-quality application-specific standard products, has announced to its customers that its products will have a price increase for some of its product lines starting January 1, 2021.

Diodes Inc. did not mention which product line prices will be increased but according to supply chain sources the lead time of Diodes’ low-voltage MOSFET has been significantly extended.

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December 31, 2020, by Hala Mohamed