Burst! ST Announced Again: Starting From June 1st, The Price Of Chips Will Increase Across The Board

Burst! ST announced again: starting from June 1st, the price of chips will increase across the board

一、ST Microelectronics suddenly announced that the price of all products will increase from June 1st!This is the second time ST has raised prices this year!

OFweek electronic engineering network learned that ST mentioned in the price increase letter that semiconductor demand continues to rise, and the current shortage of semiconductors has seriously affected the industry chain.

Although we have made capital investments to meet demand, we still face great challenges.it is an important challenge is the cost of raw materials, so we have to increase prices

ST said it will start to increase product prices on June 1 to cover all product lines.This move will undoubtedly make the originally tense trend of out-of-stock price increases even more severe.

As we all know, ST's MCU series products are scarce in the supply chain, and the prices are not cheap.

This is not the first time ST has issued a price increase notice.

On January 1 this year, ST has announced a wave of price increases. ST said it has decided to increase the prices of all product lines starting from January 1, 2021.In the follow-up, the company's production capacity will be allocated according to the customer's order arrangement and the best demand visibility to maximize the efficiency of manufacturing operations.

At the STM32 summit held in Shenzhen recently, OFweek Electronic Engineering Network also saw many companies that went to the site to request goods at the conference site. Almost most of the products could only get "out of stock”responses

In response to this, ST responded at the conference and stated that it is working closely with all customers and partners to balance production capacity covering all end-demand markets.At the same time, ST is also striving to optimize its internal fabs, packaging and testing, and supply chain to support customer needs.At the same time, expanding production capacity is also a major means for ST to respond to market demand.But in fact, everyone knows that the expansion of chip factories is usually an irreversible process. If the expansion is to make up for the current gap, it is very likely to cause problems such as subsequent inventory backlogs. Therefore, not all companies are willing to risk a huge amount of wafers.Plant operating costs and other risks to expand production.

Judging from the fact that ST had to raise prices twice in just six months, after this round of price increases, the scarcity of chip products may be even higher,The supply of chips in the second half of the year is not optimistic, Since the second half of 2020, stock-out and price increases have become the main theme of the semiconductor industry, and the lack of cores has even affected the normal operation of downstream end markets.

According to data from the American Semiconductor Industry Association, global semiconductor sales in February 2021 were 39.588 billion U.S. dollars, a year-on-year growth rate of 14.66%.Among them, the Chinese market was USD 13.735 billion, an increase of 18.91% year-on-year

Behind the high growth rate of chip sales is the hidden worry that supply cannot keep up with demand.Nowadays, the shortage of chips has become the norm. Following ST's price increase, it is very likely that other manufacturers will follow up.As far as MCU is concerned, some domestic manufacturers kept the original price unchanged in the first quarter and had to announce a price increase in the second quarter. industry, and the The biggest reason for the shortage of chips is nothing more than market demand and the shortage of upstream material supply. The supply of upstream raw materials is still under pressure for wafer manufacturers.Now, not only has there been no relief, but it seems to have worsened.

TSMC is the world's largest foundry company, accounting for more than half of the global advanced process foundry market share, but the current production capacity of TSMC has appeared "second light" situation, and orders are scheduled to the end of 2022.Chairman Huang Chongren even said that since 2020, foundry prices have increased by 30-40%, and supply and demand continue to be tight, and price increases will continue. The production capacity in 2022 has already been booke by customers and has now begun to star reservation for 2023,Another incentive for the global chip shortage is related to the previous political and geopolitical factors.Huawei’s rotating chairman Xu Zhijun also talked about this at the Huawei Global Analyst Conference held recently. He said that if there is no cooperation in the semiconductor global industry chain in the future, semiconductor prices will rise by 35%-65% as a whole. Now the price of chip foundry already on the rise, then the price of the chip itself will immediately increase, which will lead to an increase in the price of all consumer electronics products.In the next few years, price increases will become inevitable.

Everyone knows that the US sanctions on Huawei and other companies have caused panic stockpiling by global companies, making semiconductor supplies even more tight and short, and it is unknown that a new global economic crisis will be triggered in the future.Xu Zhijun emphasized that to return the entire semiconductor industry to a normal business order, the fundamental answer is to rebuild global trust and restore cooperation in the global semiconductor industry chain.

From the current point of view, the new crown pneumonia epidemic in some foreign regions has returned. For example, countries that are in a key position in the global semiconductor industry chain such as India and Malaysia have to announce measures such as "closing the country" one after another, which will cause another round of impact on the recovery of the semiconductor industry.

Store   二 The chip is out of stock, not all bad

p  Although the chip shortage market has a serious impact, it is not entirely a bad thing when combined with the development of some industries.

Industry insiders believe that under the current circumstance that the current chip market is out of stock, the local chip industry chain is expected to accelerate market expansion and increase product shipments to meet market demands business is a making money at home. The reason is that you have for another example, domestic micro-control chip manufacturers are also ushering in a good opportunity for rapid development in this wave of high market demand.for another example, domestic micro-control chip manufacturers are also ushering in a good opportunity for rapid development in this wave of high market demand.

According to a CCTV financial report, Yuan Yongsheng, the person in charge of a micro-control chip manufacturer in Shenzhen, said that orders for micro-control chips have been very hot this year, especially orders for micro-control chips for small home appliances have been full.The demand of the entire market has exploded by nearly 10 times. Up to now, the existing orders have exceeded 300 million.

Although there are many orders, due to the shortage of wafer and packaging resources and the sharp increase in costs, many companies' production capacity cannot keep up for a while, so they have to give up some orders. At present, the entire market is in short supply.

Although there are many orders, due to the shortage of wafer and packaging resources and the sharp increase in costs, many companies' production capacity cannot keep up for a while, so they have to give up some orders. At present, the entire market is in short supply.e semic