MCU Q3 price increase is set, supply and demand are tight and may continue until next year

The microcontroller (MCU) industry is booming, 8-inch foundry production capacity continues to be in short supply, and the third quarter is expected to continue the peak season of the second quarter. Product quotations continue to rise, and the tight supply and demand situation may have been fixed by the end of the year, even some manufacturers It is believed that it will be tight all the way to the first quarter of next year. Related vendors include Holtek, Songhan, Jiuqi, Lingtong, Hongkang, Nuvoton, etc.

I'm afraid it will last until next year

MCU is like the heart of electronic products, and its applications are extremely diverse, including health measurement products such as ear thermometers and forehead thermometers that surged in orders in the second quarter of last year, as well as anti-epidemic products, alcohol sprayers, soap dispensers, etc. , Or all kinds of consumer electronics products.

On the supply side, due to the characteristics of large quantities, scattered applications, and low prices of MCUs, it is currently difficult for Taiwanese manufacturers to transfer products to 12-inch plants due to cost considerations, and only a small number of high-end products fall in 12 inches.

In terms of capacity supply, currently only the world’s advanced technology will expand its new 8-inch production capacity in 2023, but after all, far water cannot save the near fire. The 8-inch tight situation seems to be inseparable from the second half of this year to next year. ten.

Therefore, the overall supply and demand situation is still quite tight. Most manufacturers have already filled orders in the first half of this year until the end of the year, and the current inventory levels of agents and clients are still low.

Some manufacturers begin to take orders for next year

Although it is only May, many customers are already preparing for next year's production capacity, especially brands, major customers, or niche products. Therefore, some manufacturers have begun to take orders for next year, including Holtek, Hongkang, etc. .

According to Holtek, it expects that the production capacity will be stable this year in the next year, so it will release 8-9% of allocating agents to take orders, and the rest will be reserved for urgent orders in the future.

Holtek also expects that due to the continued shortage of the MCU industry and low customer inventory levels, customers are positive towards placing orders next year, and that most of its production capacity may be full next year as soon as the third quarter of this year.

The supply chain is also worried that changes in prices and production capacity will still be considered for next year's orders. If subsequent OEM or packaging and testing prices are raised, whether it can reflect customers again and whether there is room for flexible adjustment is the key.

The price increase trend for the third quarter has been determined, and the rolling adjustment is in progress

It is rumored that STMicroelectronics, a major international MCU manufacturer, fired another shot to increase prices. This also clearly sets the price increase atmosphere, allowing Taiwanese manufacturers to better reflect costs and raise prices with customers.

The first quarter earnings report of MCU manufacturers this year has begun to reflect the previous price increases, and the second quarter also increased prices by 10-15%. It is understood that most manufacturers such as Holtek, Songhan, Jiuqi, Lingtong, Hongkang, etc. The quarterly rise has been set, and the price increases vary from one to another. Most of them vary according to products and customers, and the increase is not far from the past.

Generally speaking, the trend of price increases is still maintained, and rolling adjustments are in progress. Agents and customers are also able to accept price increases due to strong order demand and low inventory. Therefore, the market also expects that the first quarter will be dazzling The gross profit margin can be used as a benchmark for this year's gross profit margin.

Therefore, on the whole, despite the limited increase in production capacity, this year's products have been steadily increasing. In addition to getting rid of the ecology of bargaining and killing in the past, they can also have the advantage of the seller's market. Each company has made a profit this year. The performance is expected to deliver outstanding results.