According to insider in the semiconductor industry, automotive chip integrated equipment manufacturers (IDM) have notified customers that their chip prices will rise by 10-20% starting in 2022 due to the continuous increase in raw material costs.

The Source pointed out that IDMs such as Infineon, NXP, Renesas, Texas Instruments and STMicroelectronics are preparing to increase their prices for automotive chips in 2022 due to the continuous increase in the prices of raw materials including copper, gold, oil and silicon wafers.

"More details about the price increase have not yet been revealed, but the cost of chips for automakers will definitely rise next year." The source added.

In addition, the source also pointed out that mainland China is implementing a curtailment policy on industrial electricity, which will have another major impact on the global automotive supply chain.

Mainland China accounts for 85% of global magnesium supply. As an important aluminum alloy material used in gearboxes, fuel tank covers, seat bases and other mechanical metal parts, the output of magnesium is falling sharply.