The demand for MCU is strong, and Taiwan’s major factories intend to follow the trend of rising epidemics around the country. The market demand for health measurement products and all kinds of small household appliances continues to increase, aggravating the supply imbalance of semiconductors. The supply chain pointed out that as the global IDM major factories have strengthened their production capacity in the automotive, industrial control and high-end consumer markets, thus making the supply of consumer MCU more tight, the gap between supply and demand continues to expand by more than 20%, the relevant manufacturers are interested in raising the price.
Due to the epidemic, the market demand for MCU continues to rise, especially for STMicroelectronics MCU. The MCU of STMicro has been ranked as the top one of the “most needed components” for four consecutive quarters from Q2 2020 to Q1 2021.
Prior to this, IDM giant STMicroelectronics has raised its offer price across the board on June 1, which is also the second time that STMicroelectronics has initiated price increase measures since 2021.
Supply chain personnel are expected to STMicroelectronics second increase is expected to reach a double-digit level, and some of the delivery date has been arranged to the end of 2021, a small number of products even arranged to 2022 Q1, that Taiwanese MCU plants have the opportunity to follow up this wave of price increases.
Taiwan media: Citing sources in the supply chain, the Industrial and Commercial Times said that Holtek will raise the price of its products by another 10 to 15 percent from August due to the ongoing shortage of semiconductor production capacity, which shows no sign of easing in the short term. This was the second increase at the major Taiwanese MCU plant after an overall increase of 15 percent in April, mainly reflecting higher production costs such as foundry and sealing and testing capacity. In fact, Shengqun disclosed in April that, thanks to the continuous strong demand in the mainland market, the company’s orders in 2021 are full, and the delivery period has reached six months, and the visibility of orders has already seen 2022.
Supply chain personage analysis, in the overall industry tight, as well as the price effect driven, expected another MCU big factory new Tang will follow up, the increase will depend on the condition of the product. At the same time do not rule out the previous remaining MCU big factory, including Song Han and other follow-up up the possibility of the rise.
As a matter of fact, most of the MCUs in the market are made on 8-inch wafers, so when the fab calls for an increase, the MCU manufacturer will follow up and increase the offer, which will mostly be understood by the client. We can confirm that the overall MCU industry will thrive until Q3 of this year, “the person said, adding that the MCU industry is expected to thrive all the way to the end of 2021 and even 2022.
For the above news, Shengqun, new Tang have not publicly comment.
However, Dai Shangyi, general manager of Nuvoton, said in February that the company might adjust its prices in line with peers if upstream companies raised prices, stressing that “prices will always go up” if overall production costs rise.