According to supply chain, Microchip recently issued a price increase notice to its distributors, informing that the price of its products will be increased from March 1.
Microchip said in the notice that the Covid-19 epidemic has had a huge negative impact on the semiconductor industry, and the entire global semiconductor supply chain is facing unprecedented challenges. From semiconductor materials to fabs, assembly and testing, every link in the industry chain faces huge demands. In order to meet the huge demand from downstream customers, Microchip and suppliers are making continuous efforts to increase production capacity. As Microchip's costs increased, the company had to pass some of the costs on to customers.
According to the notice, most of Microchip's products will be affected by the price adjustment, and the specific price increase will vary from product to customer. Microchip will provide specific price increase information to authorized distributors.
Microchip said in the notice that new orders, inventory and backlog orders will all be traded at the increased prices, effective March 1.
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