ST takes the lead, TI, NXP, Infineon, Renesas, Honeywell, Nichicon and other big manufacturers will follow!
ST takes the lead, TI, NXP, Infineon, Renesas, Honeywell, Nichicon and other big manufacturers will follow!
Market overview
1. ST takes the lead, TI, NXP, Infineon, Renesas and other major manufacturers will follow!
2. Honeywell announced to increase the surcharge, which will be implemented from April 1
3. Nichicon announced a 10% increase in all product categories
01
ST takes the lead!
TI, NXP, Infineon, Renesas and other major manufacturers will follow up
Additionally, STMicroelectronics Asia Pacific has notified distributors that it will raise prices across all of its product lines in the second quarter of 2022, which could encourage other automotive and industrial IC IDMs to follow suit, industry sources said.
According to Digitimes, 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.
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.
Since the outbreak of the rise in semiconductor prices, the wafer production capacity in the chip industry has been in short supply. Many electronic component manufacturers and industrial chain companies have experienced wafer increases, packaging and testing increases, material increases, and chip increases.
Although the price of some chips in the market has dropped recently, the price and delivery time of some chips have not yet eased. Some automotive-grade chips, power management chips, driver chips, IGBTs, etc. are still hard hit by shortages, and the situation may not be optimistic.
02
Honeywell announces surcharge!
Executed from April 1st
Super industrial giant Honeywell issued a price increase letter stating that due to the substantial increase in product costs, it has decided to impose surcharges on affected products from April 1, 2022.
The translation is as follows:
Due to the impact of the global epidemic, the cost of raw materials and components continues to rise, and other factors such as limited production capacity and prolonged production cycles have also led to a substantial increase in the cost of our products.
In order to better serve our customers, ensure the continuous supply of products, and relieve the pressure caused by repeated procurement costs, after careful evaluation, based on the principles of mutual development and win-win cooperation, our company has decided to levy surcharges on the affected products , Section 5.02 "Reseller Agreement".
This surcharge will take effect from April 1, 2022.
In the future, our company will continue to provide you with high-quality products and services. We apologize for the inconvenience caused to your company and thank you for your strong support to our company.
According to public information, Honeywell's Sensing IoT Division provides more than 30,000 products, including snap-action, limit, light touch and pressure switches, as well as position, speed, pressure, temperature and humidity, current and airflow, and gas. , Scan Engine Sensor, is one of the manufacturers with the widest coverage of sensing and switching products.
Checking Honeywell's official website, you can find that its products are quite comprehensive, from aerospace, industrial, to automobile manufacturing, security systems and other nearly 20 categories, each category has a large number of products, whether it is on the plane , Hotels or hospitals, there are Honeywell products. It is understood that nearly 30% of the components or subsystems on every Boeing series aircraft are provided by Honeywell.
03
Nichicon announces 10% increase in all product categories
The supply chain reported on March 28 that Nichicon, a major Japanese aluminum electrolytic capacitor manufacturer, will increase the price of all products by 10% from April 15. As for the reason for the price increase, Nichicon said that the main reason is that various costs have skyrocketed.
Not to mention the surge in aluminum prices. Usually, the main cost of aluminum capacitors is on the aluminum foil, and the aluminum foil needs to be electroplated. In addition to the increase in the price of electricity, the environmental protection related fees charged are also high due to the high pollution of electroplating. In addition, many aluminum power plants electroplating aluminum foil and producing capacitors are not in the same place, and the recent surge in freight costs has also brought cost pressures.
In September last year, Nippon Chemi-Con, the world’s largest aluminum electrolytic capacitor manufacturer, cited raw material costs and China’s electricity curtailment/price increase, saying that the cost has increased significantly, and the cost needs to be reflected in the price, targeting different customers. Or the price of the product has been increased, and the minimum increase is more than 5%.
