According to the supply chain, Microchip issued a price increase notice to its authorized distributors and customers on January 4.
The notice stated, the Covid-19 pandemic has had a huge negative impact on the business development of the semiconductor industry. The entire global semiconductor supply chain is struggling as it has never struggled in the past. From materials, to wafer fab, assembly, and test resources, everyone is fighting to respond to the extremely high demand for products.
Microchip stated that many of their suppliers are taking actions that result in cost increases as well as aggressive commercial terms that they must meet to maintain their supply of the needed materials and services to support customer’s orders.
Given this unfortunate situation, Microchip said that from January 15, 2021, they will increase the price of many product lines.