On January 4, Microchip issued a price hike notice announcing that it would raise prices on several product lines beginning January 15, 2021. Recently, in a few days, Microchip sent a letter again, saying that the product delivery time will be greatly extended, from the original 18 weeks to 54 weeks.
Since the second half of last year, many foundries and IDM plants have experienced a continuous shortage of capacity due to the continuous explosion of demand from downstream markets.
As early as the beginning of June last year, Microchip issued a price adjustment letter to customers, saying that due to the need to maintain the long-term supply of some products, and the production cost of these products kept rising, Microchip decided to raise the price of some products by 7% on July 15.
On December 7, last year, Microchip announced again that due to the huge product demand, the undelivered orders in the first and second quarters of the original factory continued to grow. Therefore, starting from January 1, 2021, Microchip changed its "No Cancellation -- no replan" window for all undelivered orders with a delivery period of less than 90 days, and extended it to 90 days.
This time, Microchip sent another letter to extend product delivery from the original 18 weeks to 54 weeks, which further reflects the extremely tight supply.
In addition to Microchip, several chip makers have issued price increases and delivery extensions. Recently, the passive component manufacturers have also appeared the phenomenon of supply shortage, Murata, solar induction and other manufacturers announced the extension of delivery time.
Murata will inform the customer in November 2020 to extend the delivery time to at least 98 days, and then send another notice in December to extend the delivery time by two weeks, at least 112 days, as slow as 180 days, the special high-volume MLCC delivery time is the longest. The solar induction delivery time was originally at least 84 days, further extended by 24 days to 112 days.