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Taiwan's five major MCU manufacturers increase prices, and lead time is extended by 4 months

2020-12-04

Following the notice of price increase by Japanese semiconductor manufacturer Renesas Electronics, Taiwan’s five major MCU manufacturers respectively Holtek (Hetai), Lingtong, Songhan, Hongkang, and Nuvoton have recently increased their quotations simultaneously. Some items have been adjusted by more than 10%. The lead time has been stretched to four months. It is another key semiconductor component that has seen price increases after driver ICs, power management chips, and MOSFETs.


MCU (micro control unit), widely used in various electronic products, provides storage and computing functions. The industry confessed that MCU prices used to "only fall but not rise", but this year's foundry production capacity is insufficient, coupled with consumer, automotive and other customers began to replenish inventory in the second half of the year, resulting in a shortage of MCU supply. Some industry players revealed that "this is a rare wonder in the MCU industry in the past two to thirty years" and broke the past practice of "only falling but not rising" prices.


Songhan said that the company’s product line includes multimedia audio-visual control ICs, and 8-bit MCUs such as general-purpose, medical, and computer peripherals. Demand is strong, especially for OTP related products. The fourth quarter has gradually reflected the cost. To customers, most customers can also accept, some products have increased by 10%.


Lingtong pointed out that benefiting from the replenishment of inventory by customers of driving recorders and the hot demand for external cameras, the price of 32-bit MCUs has been increased since November, and the upward trend will continue all the way to next year. It does not rule out the subsequent increase of 8-bit MCUs The price will be adjusted dynamically according to market conditions.


Holtek said that in order to reflect costs, the company will start to adjust the prices of some products with lower margins next year. However, due to current market demand and tight supply chains, as long as it receives new orders, it has begun to increase prices.


Nuvoton is inconvenient to respond more in the capital increase stage. Since Nuvoton is a 32-bit MCU indicator factory in Taiwan, the industry is optimistic that Nuvoton will simultaneously benefit from this wave of shortages. As product prices increase, it will add positive support to its operations.

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According to industry analysis, the previous international MCU leader STMicroelectronics (ST) had a strike that affected market supply. Coupled with the full capacity of foundries such as TSMC, UMC, World Advanced, and Power Semiconductor Manufacturing Co., MCU manufacturers can get what they want Production capacity has been reduced and production is affected. The products of international MCU factories have been postponed across the board, and even no new orders have been received. Taking another major index manufacturer, Renesas, for example, the delivery time has been extended to more than four months, and the same phenomenon has been observed in Taiwan MCU factories.

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