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Yole:MCU prices to remain higher for several years

SemiMediaEdit
March 10, 2022

Yole Développement, a market research agency, recently released its latest report saying that MCU prices rose more than expected in 2021, and are expected to continue rising in 2022, and are unlikely to drop significantly before 2026.

Yole:MCU prices to remain higher for several years-SemiMedia

The report pointed out that in 2024 and beyond, excessive fab construction may drive down prices, but it is unlikely to directly affect the MCU market as these new fabs will not target legacy MCUs on mature processes, but rather cutting-edge MPUs, GPUs and accelerators.

Overall, semiconductor demand has outstripped supply as supply chains remain disrupted and order lead times continue to stretch, even as manufacturers have raised prices to curb demand and keep factories operating at full capacity.

Yole stated that current measures by both manufacturers and their respective government backing is expected to improve the supply as early as late 2023 and early 2024 as new fabs begin to alleviate the pressure, but this fix is not likely to bring about a shipment correction to pre-disruption levels as many consumers and industries simply picked alternative solutions (like used cars) or lost the purchasing power altogether.

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