Started: Europe’s second largest chip maker raises prices on all products

STM (STMicroelectronics), the second largest chip maker in Europe, announced that prices for the entire product line will be increased from June 1, 2021.

The increase in prices is taking place against the backdrop of rising materials costs, as well as a constant increase in demand against the backdrop of a global shortage of semiconductor products. STM stated that “the demand for semiconductors is currently reaching unprecedented heights, resulting in serious problems in order fulfillment, despite the significant capital investment.” This announcement was made by Collins Wu, Regional Vice President, Asia Pacific.

Started: Europe's second largest chip maker raises prices on all products

STM is located in Switzerland and specializes in the manufacture of discrete power supplies and microcontrollers (MCUs) for the automotive industry. Now the company is struggling to find suppliers of materials, with the suppliers themselves trying to meet customer demand due to a shortage of semiconductors. This has led to “increased costs and a more aggressive commercial environment to support the supply of these scarce materials.”

The most frustrating thing is that price increases will not be one-time or short-term. Prices are expected to rise for at least a year or two.

According to research company Susquehanna Financial Group, the crisis in the microcircuit market has moved into a “danger zone”, and the waiting period has reached 17 weeks.

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