Recently, ST suddenly issued a price increase notice. Once the news was issued, it caused a lot of forwarding.

The notice stated that ST's raw material supply was insufficient due to the impact of the new crown epidemic, while facing rising costs and aggressive commercial terms, demand remained strong. Therefore, ST has decided to increase the prices of all product lines from January 1, 2021.

Chinese translation of the price increase letter:

Subject: Price hikes, January 1, 2021

Dear customer. I hope you are in good health as you receive this letter as this unprecedented year draws to a close.

The ongoing COVID-19 pandemic continues to challenge the world economy, including the semiconductor industry. Challenges aside, at ST, many of our material suppliers are struggling to meet our demand – leading to rising costs and aggressive commercial terms to maintain our supply of these scarce materials.

In light of this situation, we are compelled to inform you that from January 1, 2021, we will be raising prices on all product lines.

In addition, demand across all of our product lines has been very strong at the same time.

Therefore, despite our substantial capital investment, we allocate our production capacity to maximize the efficiency of our manufacturing operations based on your company's order schedule and our optimal demand visibility.

Your ST account representative can share details with you and will support your implementation.

Thank you for your understanding and cooperation!

sincerely

President Mark Cassis

Marketing, Communication and Development Strategy

Jerome Rue Executive Vice President

Asia Pacific Market Sales

Previously, according to a number of industry insiders, the recent materials were really unstable. The price of ST single-chip microcomputers was different in the morning and afternoon, and the price doubled in a week. Moreover, the shortage of ST has been going on for several months, and there is no sign of relief. Some netizens said with a smile: "ST single-chip microcomputers are rising faster than Shenzhen's housing prices."

At present, the shortage of ST is still continuing, and the market price of MCU has ushered in the highest point in nearly half a year. It is obvious that some very general models, such as STM32F103RCT6, STM32F103VCT6 from $1.5 to $3.3, STM32F103C8T6 from $0.85 to $1.25, STM32F030K6T6 from $0.4 to $1.1, STM32F030C8T6 from $0.6 to $2.2, STM32F072 from $0.6 to $4.50 and so on. The price increase of ST's single-chip microcomputer is 2-3 times, and the delivery period is extended by 24-30 weeks. The influence degree of different product series varies.

It is understood that the reason for the ST shortage and price increase this time is mainly caused by the following three aspects. First, affected by the Sino-US trade war, ST's main wafer processing plant, TSMC, urgently reduced its two wafer production capacity F0&F1 series, and put The transfer of production capacity to 5G-related applications with greater demand and better profits has resulted in a sharp reduction in production capacity.

Second, overseas epidemics have driven growth in demand for medical equipment. After the resumption of work, one of the forehead thermometers has become a popular Internet celebrity. Infrared probes, low-power MCUs, ADCs, EEPROMs, and operational amplifiers are the darlings of the market, and their value is getting higher and higher. This wave of market has also completely promoted the surge in demand for STM8L, STM32F030, M24C02, and M24C04, and out of stock is inevitable.

In addition, the traditional peak season effect in the fourth quarter has obviously exerted force, and the market demand has grown, and ST's shortage will not be solved in the short term.

Looking at this chip price increase, from the early shortage of 8-inch wafers, to the rise of some chip products, to the rise of packaging and silicon wafer raw materials, there is a tendency for price increases to spread.

It is worth noting that the factors affecting the shortage this time are complex, including factors such as the electronic low-peak season, post-epidemic replenishment, shopping season, etc., as well as factors such as Huawei's "pulling goods" effect and corporate mergers and acquisitions. The follow-up trend still needs to continue. Observed.

Source: Big Fish Robot

Original title: Is the market crazy? ST will increase prices across the board from next year

Source of the article: [WeChat Public Account: Fun with MCU] Welcome to add attention! Please indicate the source when reprinting the article.

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