Microchip Price Increase Notice
Following the announcement of the window extension notice in December, Microchip issued another notice yesterday: Due to the huge negative impact of the new crown pneumonia on the industry’s business, the global semiconductor supply chain is in unprecedented difficulties, leading to increased costs and harsh commercial terms. Starting from January 15, 2021, Microchip will increase the price of multiple product lines.
January 4, 2021
Dear Clients and Channel Partners;
As we all work to put 2020 behind us, we find ourselves in unprecedented circumstances. Our greatest concern is for the health and well-being of all of our families at home and at work. Our collective battle continues even as hope grows on the vaccine front.
While the Covid-19 pandemic stretches out, it also has a tremendous negative impact on our industry's business dynamics. The entire global semiconductor supply chain is struggling as it has never struggled in the past. From materials, to wafer fab, assembly, and test resources, everyone is fighting to respond to the extremely high demand for products. Many of our suppliers are taking actions that result in cost increases as well as aggressive commercial terms that we must meet to maintain our supply of the needed materials and services to support your orders.
Given this unfortunate situation, in accordance with Microchip's Terms and Conditions, we regret to inform you that we are increasing prices across many of our product lines starting with shipments as of January 15, 2021.
Your Microchip Client Engagement team is available to share the details as it applies in your case and will work to support you in the implementation of this.
Microchip Global Client Support Team
According to data, Microchip is headquartered in Chandler, Arizona, and is the world's leading supplier of patented solutions for integrated microcontrollers, mixed-signal, analog devices and flash memory.
According to internal sources, the prices of almost all product lines have increased, ranging from 5% to 10%, and some products have even increased prices by more than 10%.
Since last year, the semiconductor industry has been "rising" continuously. Price increases involve foundry, design, and packaging and testing. The areas of price increases include memory chips, power management chips, and automotive chips.
As early as December last year, a notice about the extension of the microchip window period was widely disseminated in the electronic circle. The information showed that due to the huge demand for its products, the undelivered orders in the first and second quarters continued to increase, so it decided to start from 2021. Beginning on January 1, 2016, for all undelivered orders with a delivery period of less than 90 days, the "No cancellation, no rescheduling" window will be changed to 90 days.