According to industry sources, STMicroelectronics Asia Pacific has notified distributors that it will increase prices across all of its product lines in the second quarter of 2022, which could encourage other automotive and industrial IC IDMs (IDMs, international integrated component manufacturers) to tighten their grips. Then the price went up.
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Moreover, sources said that in a letter from STMicroelectronics Asia Pacific and its distribution partners, unfavorable economic and geographical conditions have led to rising raw material costs as well as energy and logistics costs, with the total cost reaching a level that makes the company not all can be absorbed. The price increase will also apply to the company’s existing order backlog.
Furthermore, STMicroelectronics has raised chip prices in the fourth quarter of 2021, when its order visibility was extended to 18 months. The person further noted that other European and Japanese IDMs, such as Infineon and NXP, are also expected to raise their chip prices to reflect rising costs and a still-tight supply of automotive chips.
Renesas is also considering raising chip prices again, which it just raised in January this year. Texas Instruments is also expected to be one of the first IDM companies to raise chip prices in the second quarter.
