According to supply chain, Allegro Microsystems has issued a price increase notice to its customers, stating that it will increase the price of its entire line of products.

Allegro said in the notice that the company has made significant investments to increase manufacturing capacity and output to meet the growing global demand for its products. These investments have enabled it to serve more customers over the past year, as its order bookings in its core automotive, industrial and consumer markets far exceeded previous forecasts and historical run rates.

Allegro also noted that it costs more to produce products due to rising input costs from supply chain partners. In addition, new capacity to meet demand over the next 6 to 24 months is scarce and costs much higher than previously forecast.

Allegro emphasizes that these costs cannot be absorbed by them alone at current pricing levels. As a result, Allegro has decided to increase prices across all product lines with effective dates ranging between June 1st , 2022 and August 1st, 2022.

Allegro did not mention the specific price increase in the notification letter, but according to supply chain sources, the price increase should be around 20% to 25%.