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Chipmakers plan to raise prices for automotive and industrial chips

SemiMediaEdit
September 9, 2022

According to reports, Intel expects to implement price increases for all product plans starting in the fourth quarter of 2022, with a range of about 10-20%, including INTEL motherboard chipset products.

Back in Intel's second-quarter 2022 earnings report, the company said it missed double-digit revenue and earnings per share targets and saw huge declines in both its client computing and data center divisions, and will raise prices for most of Chipzilla's components, including the CPU, in the fourth quarter of this year.

In addition, the report pointed out that NXP recently stated that the development of new energy vehicles is accelerating, and the next supply shortage will continue to bring orders to the company. Based on the current and 2023 NCNR (non-cancellable, non-returnable) order volume, the company's current capacity can only cover 80% of the order demand.

The source said that NXP's automotive chip production capacity has been unable to meet the demand for orders, so the price of automotive chips will be raised.

According to industry insiders of power semiconductors, the supply of power semiconductors and MCUs is still tight, and the lead time of IDM's automotive IGBTs is still more than 50 weeks. It is expected that in 2023, automotive chips, including power semiconductors, may continue to rise.

The report also pointed out that STMicroelectronics, Texas Instruments and Infineon are planning to raise prices for industrial and automotive components in the fourth quarter. Consumer components will not increase in price, but industrial components will rise by 10%, and automotive components will rise by 20%.

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