Several Taiwan-based IC design houses are poised to raise their chip prices starting the fourth quarter of 2021 to reflect rising manufacturing costs, according to industry sources.
MediaTek, display driver IC specialist Novatek Microelectronics, networking IC company Realtek Semiconductor, and server peripheral chipmakers ASMedia Technology and Aspeed Technology are all capable of passing rising manufacturing costs onto customers, and will initiate price increases starting October as well as the first quarter of 2022, the sources indicated.
MediaTek plans to make upward adjustments in the prices for part of its chip solutions, particularly Wi-Fi solutions including the MT7668 and MT7663 series, by as much as 30% starting November 1, the sources said.
With the shortage of networking chips worsening, Realtek has notified its customers about an about 15% price hike for all its products with the new prices to be effective starting October 1, the sources noted. Realtek raised prices for part of its Wi-Fi chip solutions by 10-15% in September.
Realtek's bigger international peer Broadcom also plans to raise its chip prices by as much as 20% starting October, the sources indicated. Meanwhile, Intel has reportedly notified its clients about price increases for its Wi-Fi and Ethernet networking chips.
ASMedia, which has seen clear order visibility through the end of 2022, has plans to make over 20% upward adjustments in its chip prices starting January 2022, according to the sources. ASMedia is best known as a partner of AMD, and contracts TSMC to make chips.
Buoyed by robust demand for datacenter applications, baseboard management controller specialist Aspeed is also looking to raise its chip prices in the fourth quarter, the sources said. Aspeed already raised its quotes by 10% in May.
Despite recent weakness in LCD panel demand and prices, Novatek plans to make 5-10% upward adjustments in its driver IC prices with the new prices to be effective starting November, the sources noted. Novatek will also raise its SoC chip prices by 10-20% in October.
Article translated by Jessie Shen
