According to the supply chain, on June 1, Microchip sent a letter to its customers saying that due to the rising production costs of some products, it was decided to increase the price of some products by 7% from July 15.
The letter pointed out that the price adjustment mainly applies to AVR-based MCUs (ATTINY, ATMEGA and ATXMEGA series) and 8051 series MCUs.
In 2016, Microchip acquired Atmel for $3.6 billion, and the AVR architecture was Atmel’s own technology at the time. Since Microchip's price adjustment is mainly aimed at Atmel's AVR series, industry insiders said that by adjusting prices, Microchip's PIC series MCU market share will be increased.
The following is the content of the email.