STMicroelectronics recently issued a price increase notice to its customers, stating that it will increase the prices of all its product lines from January 1, 2021.
ST mentioned in the notice that many of their material suppliers are struggling to meet their needs, which has led to increased costs and aggressive commercial terms.
In addition, ST mentioned that all of its product lines are experiencing strong demand. Under this situation, ST will allocate capacity based on its customers’ firm orders and the best visibility of demand to maximize production and operation efficiency. .
According to the supply chain, ST's MCU actually started to extend the lead time a few months ago and prices have risen in the supply chain. In the past month, the prices of components other than the MCU have also risen. Supply chain sources said that next, the demand side of these components needs to be fully prepared because they will face great challenges in delivery and price.
The following is the original text of the notice.