Up to 20% increase! Many chip manufacturers announced price increases

After more than a year of declining semiconductor market demand, which forced chip manufacturers to cut prices to compete for orders, semiconductor market demand has begun to pick up since the fourth quarter of last year. Recently, many domestic chip manufacturers have begun to announce price increases, with the highest increase reaching 20%.

For example, Zhejiang Yaxin Microelectronics Co., Ltd. issued a "price adjustment notice" to customers on April 23, announcing that it would increase the unit price of its entire series of products by 15% to 20%, which will be implemented immediately. The reason given for the price increase is: " The international precious metal market prices have recently increased by more than 15% on average, with some materials peaking at 50%, and there is a continuing upward trend, resulting in rising raw material costs. Our company's various raw material prices There has been a significant increase, and the cost has been far beyond what our company can afford. ”

Shenzhen Chuangxin Microelectronics Co., Ltd. also issued a "price adjustment notice" to customers on April 23, announcing that it would increase the prices of some products starting from May 1. The reason for the price increase is also "due to the gradual increase in the price of raw materials such as metals, the quotations in the semiconductor industry are constantly rising; our company is forced by the pressure of price increases in the supply chain, and product costs are also rising."

Nanjing Zhilingxin Technology Co., Ltd. also issued a "price adjustment notice " to customers on April 26 , announcing that from now on, all series of products will be adjusted based on the original sales price . The reason for the price increase is also " due to the recent continued rise in raw materials, which has led to an increase in the overall cost of chips . "

Wuxi Huazhongxin Microelectronics Co., Ltd. issued a "price adjustment notice" to customers on April 26, announcing that starting from May 20, the prices of some products will be increased by 10%-20%. The reason for the price increase is also that " due to the recent sharp increase in international raw material prices, product costs are also increasing. "

Although the above-mentioned price increases by chip manufacturers are due to rising raw material prices, they also reflect the recovery of market demand. After all, if the chip market demand slumps, price increases may further suppress demand from downstream customers. At the same time, the rise in upstream raw material prices also reflects, to a certain extent, the increasing demand from chip design manufacturers for upstream semiconductor manufacturing orders.

According to estimates from the U.S. Semiconductor Industry Association, global semiconductor industry sales will grow by 13.1% in 2024. Market research organization TechInsights predicts that global semiconductor sales will grow by 24% in 2024. At TSMC's first quarter presentation, TSMC CEO Wei Zhejia predicted that the global semiconductor market growth (excluding memory chips) will increase by about 10% this year , and the global wafer foundry market is expected to grow by 14%-19 % this year .

Source: Core Intelligence