On July 25, Maxim Integrated issued a notice to its authorized distributors that it would increase the prices of all its products from August 22.
Maxim Integrated stated in the notice that the IC sector continues to experience extraordinary levels of demand, which has placed significant pressure on the entire supply chain. This has resulted in a significant shortage of not only manufacturing capacity, but also the specialty raw materials essential to produce semiconductors.
Maxim Integrated said that in the past few quarters, their manufacturing costs have been steadily rising. Maxim has made every effort to postpone the transfer of these cost increases to customers, hoping that demand will return to a more normal level, but this has not been the case.
According to the notice, Maxim Integrated has decided to implement a 6% price increase for all products. Maxim’s distribution partners will see this reflected in the next price books and will be effective on August 22, 2021. All backlog at book price will be written up based on the new book cost on August 22, 2021. New quotes and orders entered on or after August 22, 2021, will see this price increase. Existing quoted backlog will see this price increase reflected on December 1, 2021.
Maxim emphasizes that although price increases are never easy to accept, they have no choice but to take the necessary actions to protect and sustain their business.