Elan Electronics’ statement: MCU will rise in an all-round way from January 2021
Following yesterday’s confirmation by the five Taiwanese MCU factories including Holtek, Lingtong, Songhan, Hongkang, and Nuvoton that they raised their quotations simultaneously, Elan Electronics also stated that the MCU will increase in an all-round way from January 2021.
According to a report from Business Times, Ye Yihao, chairman of Elan Electronics, said at a summit event yesterday that the current supply chain quotations for foundry, packaging and testing have risen. In response to rising costs and strong demand, some microcontrollers (MCUs) ) The price has been reflected to the customer, and the MCU price will be fully increased from January 2021.
As for the part of notebook-related chip products, Elan also plans to reflect the cost increase. Ye Yihao said that the current demand for laptop-related chips is strong, and the supply gap is as high as 20%. It is expected that the shortage will continue in the second quarter of 2021. Some customers have expressed their willingness to increase purchases, and will consider reflecting the increase in manufacturing costs.
The supply chain revealed that due to the strike of STMicroelectronics and the gradual recovery of various terminal demand in the second half of 2020, and the current 8-inch foundry capacity is fully tightened, the MCU production capacity has been crowded out, so the supply began to be less than the demand, and the market began to There is a gap, no matter whether it is 8-bit or 32-bit, a similar situation occurs. In order to reflect the problem of rising costs, Elan has raised some low-margin MCU quotations in November.
As for notebook-related product lines, Elan currently has a total of product lines such as touch IC, touch panel module and fingerprint recognition IC, and almost all of them have supply gaps.
Industry insiders said that although Elan has added TSMC capacity support, due to the strong ordering force of customers, there is a shortage of stock. It is expected that Elan is expected to gradually increase the quotation of some notebook products from the first quarter of 2021.
Founded in May 1994, Elan Electronics is a well-known IC design company in the Asia-Pacific region. It mainly develops and sells integrated circuit (IC) products. Its product lines include: consumer chips, communication chips, microcontrollers, personal Computer peripheral chips, digital Display chips and application chips for intelligent human-machine interface technology.
NXP also issued a price increase letter!
According to the first report by Chip Superman, recently, NXP, the leader in automotive chip manufacturers, also issued a price increase letter. NXP said that due to the impact of the new crown epidemic, NXP faced the dual impact of serious product shortages and increased raw material costs, and decided to increase product prices across the board!
Relevant sources revealed that the price increase of NXP products may start by 5%, and some products require customers to sign a one-year NCNR (No Cancellation, No Return) agreement.