The shortage of chips continues. Although manufacturers have expanded their production capacity, some products are still out of stock, resulting in rising product prices, especially in automotive electronics. STMicroelectronics (ST), a major automotive electronics manufacturer, also issued a notice saying that it will start to raise the prices of all product lines in the second quarter, and then fuel the momentum of semiconductor price hikes.
The distributor notification letter signed Collins WU, vice president of distribution and sales in the Asia-Pacific region of ST, stated that the continuous shortage of global semiconductors, coupled with the economic and geopolitical situation, has seriously affected the industry, and there is no sign of recovery in the short term. Concurrent with the continued heavy investment in manufacturing, the cost of raw materials and the cost of energy and logistics has reached levels that STMicroelectronics cannot fully absorb.
As a result, prices will be raised for all product lines in the second quarter of this year, including products that have not yet been produced and shipped. More information to be shared by local STMicroelectronics account managers in the next few days. Thank you for your continued support, trust and commitment to STMicroelectronics.
STMicroelectronics also raised prices in the fourth quarter of last year due to the same cost issue, and raised prices again after a quarter, showing the pressure on manufacturers to increase costs and the continued shortage of goods in the market. How the price trend will develop in the future will be a topic of concern to the industry.