Power components and MCU are experiencing price increases due to various reasons
Recently, power semiconductors and MCU chips have started a new round of price increases, but the signal of market demand recovery is not clear, and there are multiple factors contributing to the price increase. Although it appears that the industry has already recovered, some practitioners have stated that price increases are only a reflection of costs.
Since 2022, power components such as diodes, different MOSFETs, and various application MCU chips have experienced a reversal of supply and demand and significant price reductions. At the same time, the overall economic downturn has led to a decrease in demand in the consumer electronics market, so companies have focused on adjusting inventory within a year. Entering 2024, inventory gradually returned to normal levels, and the previously fierce price competition seems to have ended.
According to industry news, by the end of 2023, Taiwan, China power semiconductor manufacturers will take the lead in raising prices by 10%~20%. The reason for the price increase is that the cost of raw materials and labor will increase, leading to higher operating costs. Companies are actively adopting price adjustment strategies to help achieve a balance of income and expenditure. In addition, Chinese Mainland companies are also increasing the prices of middle and low-end products.
The industry said that the price increase of middle and low-end product lines had little impact on Taiwan, China enterprises in the short term; Many MCU manufacturers have stated that inventory is expected to return to normal in the first quarter.
Although the demand for consumer electronics has not yet increased significantly, many MCU manufacturers in Taiwan, China have started to raise prices recently. Industry insiders say that products with price increases are universal products, and the main factors contributing to price increases are market price bottoms and increased costs.
Regarding the market situation in 2024, MCU companies remain cautious and are turning their attention to overseas markets. It is expected that the market will be better this year than in 2023, but there is still uncertainty.
According to industry news, by the end of 2023, Taiwan, China power semiconductor manufacturers will take the lead in raising prices by 10%~20%. The reason for the price increase is that the cost of raw materials and labor will increase, leading to higher operating costs. Companies are actively adopting price adjustment strategies to help achieve a balance of income and expenditure. In addition, Chinese Mainland companies are also increasing the prices of middle and low-end products.
The industry said that the price increase of middle and low-end product lines had little impact on Taiwan, China enterprises in the short term; Many MCU manufacturers have stated that inventory is expected to return to normal in the first quarter.
Although the demand for consumer electronics has not yet increased significantly, many MCU manufacturers in Taiwan, China have started to raise prices recently. Industry insiders say that products with price increases are universal products, and the main factors contributing to price increases are market price bottoms and increased costs.
Regarding the market situation in 2024, MCU companies remain cautious and are turning their attention to overseas markets. It is expected that the market will be better this year than in 2023, but there is still uncertainty.