In November, a new round of price hikes for semiconductors struck! Continue to rise in 2022!

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Semiconductor prices will continue to rise in 2021! Many companies announced price increases in November!On November 1, Taiwan Economic Daily reported that it would benefit from WiFi 6 business opportunities
MediaTek has raised the price of WiFi 6 chips by about 20% to 30% this quarter
Realtek once again reported costs to customers in October, rising 10% to 15%, and the cumulative increase has been at least 50% this year.
However, MediaTek declined to comment on the rumors of product price increases.
MediaTek has benefited from the accelerated penetration of 5G and WiFi 6, as well as the announcement of new client smart devices, wireless Bluetooth headsets and tablet PCs, and has raised its full-year revenue outlook twice. Recently, due to work at home, home office study, etc., the demand for the WiFi market has increased. The strong consumption of chips has also increased the demand for related chips under MediaTek.
With regard to the price increase of WiFi chips, the supply chain analysis is mainly due to insufficient capacity in the mature process, causing the supply of WiFi chips to be far less than the market needs. From the point of view of Broadcom, the leading global Netcom chip manufacturer, the current delivery time is more than 52 weeks. For this reason, the price has been increased by more than 20%, and the foundry price has been increased frequently. To this end, MediaTek and Realtek have raised prices several times this year.
The mainland's local WIFI chip companies are also subject to production capacity, resulting in the third-quarter performance falling short of expectations. Espressif Technology (688018.SH) and Allwinner Technology (300458.SZ) saw revenue decline in the third quarter compared with the second quarter. Both companies said that the shortage of production capacity was the main reason for the decline in revenue in the third quarter.
According to the Taiwan Economic Daily, the time when the new capacity of major fabs is opened generally falls in 2023, which cannot keep up with the trend of significant growth in the penetration rate of WiFi 6 next year. Under the condition of material shortage, Broadcom has given priority to supplying Apple, making the supply of Wi-Fi 6 chips tighter. The main foundries may increase their quotations again in the first quarter of next year. MediaTek and Realtek have reported rising costs. The price of WiFi 6 chips will be raised again in the first quarter of 2022, which is about 10%. It is expected to further increase the unit price of product sales and bet on continued strong operations.
In addition, more companies announced price increases in November!

1 Xilinx will increase by 10%-20% on November 1st

Xilinx (Xilinx) issued a price increase letter stating that due to the impact of the new crown epidemic, the problem of semiconductor shortages is becoming more and more serious. Xilinx faces significant cost increases. To offset these increased costs, prices for all orders on and after November 1, 2021 will be increased.

2 It is reported that UMC has notified customers that the price will increase in November

UMC has notified customers that it will increase the foundry prices again starting in November, with an average increase of 10%. According to UMC’s notice, driver chips will increase by 10%-15%, special high-voltage processes will increase by more than 10%, and consumer-grade chips will increase by 5%-10%. In this regard, UMC said it would not comment on the price increase.

UMC has previously reported that it will raise prices again in the fourth quarter, and has twice revised the annual ASP growth, from a year-on-year increase of 10% to 10%-13%. The visibility of orders will be seen at the end of 2022, showing maturity. Capacity continues to be in short supply.

3 Novatek: November 1st to increase IC prices by about 10%-20%

The price of driver ICs, which had been raised in August, is planned to be raised by 5-10% in November.

4  Xinhua: The fourth season will be further adjusted

According to reports, Xinhua's remote server management chip (BMC) orders have rebounded significantly in the second half of the year, and the growth momentum in 2022 will continue to rise. At the same time, in response to TSMC's price increase, after the 10% increase in May, the fourth quarter will also be further adjusted. rise.

5 Samsung Electronics is said to also join the wafer price increase army , will officially start the price increase in the fourth quarter, and will also outsource some of the smart phone AP production capacity.

6 LED driver IC company Macroblock Technology's quotation rises

Supply chain news, LED driver IC company Macroblock Technology issued the latest price increase notice on September 27, and all product lines will increase prices again in the fourth quarter.

7 STMicroelectronics raises prices for all product lines in the fourth quarter
STMicroelectronics said that semiconductor supply shortages continue to affect industry production, and there is no recovery in the short term, so it will increase the prices of all product lines in the last quarter of 2021.

8 TSMC

The price of mature process is increased by 15-20%, and the price of advanced process is increased by 10%. The new contract adopts the new price, and a full year-round increase is applicable.

9 Power Semiconductor Manufacturing Co., Ltd.

The price increase is estimated to exceed 10% in the first quarter of 2022, and it is expected to increase once every six months.

10 Advanced in the world

The price increase is estimated to exceed 10% in the first quarter of 2022, and it is expected to increase once every six months.  

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source from Semiconductor Today