Due to the imbalance between supply and demand of production capacity, Nuvoton Technology's wafer foundry prices will increase by 15% from September 1

Recently, Taiwan's MCU giant Nuvoton Technology sent a price increase letter to its customers, stating that due to the shortage of wafers in the third quarter and the imbalance between supply and demand of production capacity, it plans to adjust the wafer foundry price from September 1, increasing it by 15% based on the current price; at the same time, starting from September 1, orders that have not been put online will also be executed according to the adjusted price.

Public information shows that Nuvoton Technology is a semiconductor company located in Taiwan, China. It was established in July 2008 after the separation of the logic product line from Winbond Electronics. It is a wholly owned subsidiary of Winbond Electronics. Its main product lines are Consumer Electronics IC (Consumer Electronics IC), Computer IC (Computer IC), and Foundry Service (Foundry Service).

Among them, Nuvoton Computer's IC products include input and output controllers for motherboards, and have successively launched products such as TPM chips and Sideshow chips to strengthen computer security mechanisms. Consumer electronics products focus on the design and development of voice ICs, ISD ChipCorders, and microcontrollers (microprocessors/single-chip microcomputers/Microcontrollers/MCUs).

The foundry wafers are used for MCUs and power chips.

At the end of August 2020, Nuvoton Technology completed the acquisition of 100% equity of Panasonic Semiconductor Solutions (PSCS), equipment and inventory of Panasonic Semiconductor (Suzhou), and Panasonic's semiconductor production business of Panasonic Industrial Devices Semiconductor Asia in Singapore for US$250 million. In the second quarter of this year, Nuvoton Technology's revenue was NT$10.614 billion, a month-on-month increase of 5.4%.

Dai Shangyi, general manager of Nuvoton, believes that the production capacity of wafer foundry and back-end packaging and testing suppliers is insufficient and the prices are high. As long as they can obtain production capacity and make products, they will be able to sell them. It is expected that the market supply and demand in the second half of the year will not see a significant reversal and there will not be much change.