According to the supply chain, NXP has issued a price increase notice to customers on November 26, and the price increase covers all NXP products.

The notice stated that NXP is facing a severe shortage of products and a significant increase in the cost of materials used to manufacture its products. In order to solve the problem of unforeseem increase in costs from their suppliers, NXP reluctantly must increase the prices of all products to ensure that they can obtain the supply of materials and services to complete product production.

According to the market conditions observed by SemiMedia, the entire semiconductor industry chain, including semiconductor wafers, foundry and semiconductor packaging, is facing a shortage of raw materials or insufficient production capacity. Industry insiders said that this situation is difficult to resolve in the short term and is expected to continue until mid-2021.

In addition, Taiwanese media reported that IC manufacturers such as Holtek, Sonix, Generalplus and Nuvoton have also adjusted their MCU prices recently.