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January 23, 2021

Three major IC manufacturers issued price increase notices, which will increase by 30% from January 1, 2021

Recently, the price increase notices of major IC manufacturers have been one after another, from Renesas, NXP to MICROCHIP, ST, Fuman Electronics, Diodes, Hangzhou Silanwei, Wuxi Xinjieneng... Today, the price hike has spread to Silergy, AOS, and Goodix.

On December 18, the chip manufacturer Silergy issued a price increase notice to customers, stating that the current order turnaround time for most products of Silergy is at least 14 weeks, and the delivery time may be further extended in the future. In addition, the order can only be rescheduled once; if rescheduling is required, a 1% fee will be charged. For orders after January 1, 2021, if there are additional orders, we will charge a 10% expedited order fee.

According to the official website, Silicon Power Semiconductor’s main products include single-stage step-down switching DC voltage stabilizer control IC, single-channel step-up switching DC voltage stabilizer control IC, step-up LED backlight control IC, and DC input LED lighting Control IC, linear regulator, protection switch, meter IC, etc.

On December 28, Goodix, a major touch IC manufacturer, issued a price increase notice again. The notice showed that due to the dramatic market changes this year, the prices of upstream suppliers such as wafer fabs and packaging and testing continued to rise significantly, resulting in the cost of our products keep growing. However, based on the principle of long-term cooperation, in the previous wave of price increases in October 2020, our company has resisted the pressure and has not raised the price of the product, the purpose is to share the cost pressure for customers.

As of December, our company continued to receive notifications of price increases from suppliers. The pressure of cost increases continued to exist. Combined with objective factors such as tight supply chain capacity, in order to ensure the stable supply of supply chain capacity and the continued cooperation, our company After accounting and discretionary consideration, it is decided to make the following adjustments to the selling prices of GT9 series products:

1. The U.S. price of all products will be increased by 30% based on the current price;

2. The above adjustment plan will be implemented at 0:00 on January 1, 2021, that is, the new price adjustment plan will be applied to our system shipment orders from 0:00 on January 1, 2021;

3. Starting at 0:00 on January 1, 2021, all orders received before that but not delivered will be resent by the agent after the order applies to the above adjustment plan, and our system will make corresponding price changes.

According to public information, Goodix Technology was founded in 2002, entered the touch IC field in 2006, and started the research and development of capacitive touch chips in 2007. After MediaTek became a shareholder in 2011, the company's market influence has increased significantly. Mass shipments began, and in 2012, it became the world's first-class touch IC supplier with advanced GT8/GT9 series chips. Its products quickly seized the domestic tablet market and smartphone market, and gradually entered the supply chain of domestic first-tier brands such as ZTE, Huawei, Coolpad, and Lenovo, and international brands such as Samsung, Asus, Acer, and Toshiba.

On December 29, the power IC manufacturer AOS (All Nations Semiconductor) stated in the notification letter that due to increased costs and long delivery times, we are also facing tremendous pressure and challenges from suppliers. We regret to inform you that starting from January 1, 2021, the prices of all our products will increase by 20%.

It is understood that the main products of IWC are MOSFETs, IGBTs, power ICs, IPMs, TVS, SIC/GaN and HVICs.

In addition, according to industry insiders, some agents and original manufacturers on the market are not quoting or taking orders these days. The reason they gave was that they had to wait until January to see the situation before quoting orders, and now they are waiting for price adjustment notices. It is visually estimated that starting from January 2021, more price increase notices will flow out of the market. In 2021, HOREXS chip IC carrier boards will not be adjusted for the time being. New and old customers do not have to worry too much. If there are new customers who want to establish carrier board cooperation with HOREXS, please inquire.

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