The company announces a new round of surge in chip prices

On July 26, according to Taiwan media reports, many chip factories around the world, including Taiwan, have announced price increases. This means that a new round of chip panic begins in the second half of the year.

This is because the cost of chip foundry has soared this year.

From March 29 to April 3, TSMC announced three consecutive events. The first was a 25% increase in the price of 12-inch wafers, the second was an increase in the foundry price of driver chips, and the third was the end of this year. The price of orders has risen across the board.

At the same time, since last year, SMIC has seen multiple price increases in foundry, and is expected to face a round of price increases afterwards, and the price increase will far exceed the expected 15% to 30%. This also indicates that the price of subsequent chip products will also rise.

The sharp rise in foundry costs has directly driven many chip companies around the world to announce price increases since June.

European chip giant STMicroelectronics announced that its full range of products will begin to increase prices on June 1st;

The price of some products of ON Semiconductor will be raised from July 10 this year.

Domestic BYD Semiconductor issued a notice to customers that the company decided to adjust the prices of IPM (intelligent power modules) and IGBT single-tube products (a type of power semiconductor device) from July 1, 2021, with an increase of not less than 5 %.

Anshi Semiconductor, a subsidiary of Wingtech Technology, announced that it will increase product prices on June 7; Silan Micro said that due to the impact of rising prices of raw materials and packaging, it has decided to increase the prices of LED lighting driver products from June 1;

Taiwan-based shares said that in view of cost and other factors, the company's power semiconductor devices do not rule out the possibility of price increases.

An article claims that the "syllogism" of chips has been broken. Prior to this, the development of the semiconductor industry followed a syllogism, from inventory to digesting inventory to re-drawing inventory. According to the development law of the semiconductor market, when the total supply remains unchanged, the demand is sometimes strong and sometimes weak, and there is a dynamic change from strong to weak or from weak to strong. It is normal for chips to be out of stock, and there is a certain shortage period.

However, imbalances and contradictions are present in this dynamic, and the cycle of chip shortages has undergone tremendous changes.

When the price of chips is high, companies also go to stock up. This shows that chips are out of stock to the extreme. It is a bit like a person who is starving and exchanges gold for a piece of bread.