STMicroelectronics and Xilinx raise prices again
2021-07-13

Recently, it was reported that STMicroelectronics (ST), a well-known chip maker, automotive chip manufacturer, and Xilinx, a leading FPGA manufacturer, both issued price increase notices.

The STMicroelectronics price increase notification letter pointed out that the continuous shortage of semiconductor supply has seriously affected the industry, and there is no sign of recovery in the short term. Recently, the prices of some key supplies (fabs, raw materials, logistics, etc.) have risen, and the investment in STMicroelectronics has increased significantly. Raise prices for all product lines in the last quarter of 2021, including orders not yet produced for shipment.

Xilinx also issued a price increase notice, starting from November 1st, the price of some products will be increased by 10%~20%. Xilinx stated that the epidemic has brought challenges to the global economic situation and affected the global electronic product supply chain, as well as all Xilinx suppliers and customers.

The FPGA giant said it would work hard to meet industry demand, but semiconductor shortages have created unprecedented obstacles. Xilinx is working with suppliers to ensure capacity and maintain supply to meet current and future customer needs, and to reduce pressure due to significant cost increases, will increase prices for current and future orders starting November 1. The specific price increase of the product is 10% for general series products and 20% for other types of products.

It is reported that the rising price of upstream raw materials and the continuous increase in quotations of the front-end foundries are also the driving force for chip manufacturers to increase the price of chips. Today, STMicroelectronics and Xilinx have raised prices again, once again emphasizing that the global semiconductor capacity supply situation is still not optimistic.

It should be noted that as of press time, neither chipmaker has commented on the above-mentioned price increase, so the authenticity of the news has yet to be further verified.