Before April 25, the NAND flash control IC factory group sent a notice of price adjustment to customers, and launched the price adjustment plan for each product line. From now on, all new orders will be fully increased, among which power management IC or other 8-inch wafer factory products have the highest increase.
In the notice of price increase to customers, qunlian said that the recent strong demand in the overall semiconductor supply chain has caused the supply of various raw materials to fall short of demand and prices to rise. The upstream and downstream supply chains, including wafer factories and packaging and testing factories, are full of capacity, and continue to cancel discounts or price increases. The demand for various types of control chips is far beyond expectations. In addition, the company continues to increase investment in research and development of advanced control chips to meet the demand.
Qunlian said that after careful consideration of the overall operating conditions and in order to ensure long-term stability of supply partners and customer demand, it decided to adjust product prices according to the supply and demand of each product line.
Qunlian pointed out that there seems to be no gentle trend in the price rise of the semiconductor supply chain this year, including the foundry prices of 8-inch and 12 inch wafers, IC carrier and IC packaging, dram/sdram, PCB and connector MLCC.
Therefore, qunlian announced the launch of the price increase plan, which covers a full range of flash memory control chips and modules. New orders will take effect from now on. For orders that have received orders before but have not yet been delivered, the price increase will be discussed on a case by case basis.
The price increases of each product line are different. Power management IC or other products manufactured by 8-inch wafer factory will have a higher increase; Other flash memory control IC products are adjusted according to the capacity of each product; Flash memory module products are gradually increased according to market changes and supply and demand.
Qunlian stressed that it has tried its best to absorb the impact of the price rise in the supply chain on all customers. However, in order to ensure sufficient follow-up supply, it is inevitable to accept the price rise of various semiconductor wafer factories, packaging factories and raw materials, and asked customers to estimate the annual demand in advance to ensure that there is no risk of supply.
In March this year, Panjiancheng, chairman of qunlian, once said that the second quarter is expected to be the most serious time for material shortage, but qunlian has sufficient material sources and will not be affected. This year’s operation will continue to grow, with great expansion opportunities and ambitions. In terms of the current product price rise, even if the shipment does not increase this year, the revenue will grow by 20%.
Panjiancheng said that the NAND flash controller is out of stock, and the demand for industrial use is also very strong. Customers have been chasing the volume, and they are requesting qunlian to deliver goods every day, so the market demand is tight; The second quarter is expected to be the time when the material shortage is the most serious, and all parts and components will be fermented in the second quarter.
However, Panjiancheng stressed that qunlian has its own power management chip production capacity, and capacitor related products have been stocked up for 10 months. It also has a good relationship with packaging factories and PCB factories, and has sufficient material sources.
Referring to the impact of the snowstorm on the NAND flash controller capacity of Samsung Dezhou plant, Panjiancheng said that recently a large number of PC, consumer and other customers came to look forward to the supply. From the perspective of customer demand, the impact on the NAND flash controller capacity of Samsung Dezhou plant is very serious.
As for the price increase, Panjiancheng revealed that it was not qunlian that took the initiative to increase the price to the client, but the customer asked qunlian to increase the price to maintain uninterrupted supply.
As for whether the shortage will cause repeated orders, Panjiancheng believes that there must be, but the demand for existing orders is too strong. If there is, it can also ease the market demand, which is not a bad thing.
Looking ahead to this year, Panjiancheng said that the operation will continue to grow. This year’s performance is worth looking forward to. No matter in the face of stock shortage or the growth of application demand, many layouts are carried out, and there are great expansion opportunities, ambitions and plans; According to the current product price increase, even if the shipment volume does not grow this year, the revenue will grow by 20%.
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