ST announce: Price increases across the board from June 1

May 18, ST STMicroelectronics suddenly announced that June 1 from the full range of product prices increases! This is the second price increase of ST this year!

ST’s price hike letter pointed out that the semiconductor demand continues to rise, the cost of raw materials increased, semiconductor shortage crisis has seriously affected the entire supply chain, therefore, ST had to carry out price increases, from June 1 to raise prices for all product lines.

Earlier this year, ST announced a wave of price increase notices, saying it had decided to raise prices across all product lines from January 1, 2021. The company will then allocate production capacity based on customer order scheduling and optimal demand visibility to maximize manufacturing operations efficiency.

ST is STMicroelectronics, the brand microcontroller accounted for 8% of the world, is also the domestic MCU market leader. ST MCU is a hot commodity in the market, among which STM32F103RET6, STM32F103C8T6 and other MCU microcontroller models have been on the hot inquiry list of 100 cloud core week for many times.

It is worth noting that the decision to increase the price of ST for the second time will undoubtedly make the trend of price increase more severe, and further aggravate the stockpiling tide. This time, the main stockpiling will be downstream terminal manufacturers, and distributors will act more on hearing the wind.

Among mainland Chinese companies, SMIC and Huahong Semiconductor have a clear expansion trend and are strategically bullish on local foundry assets. In the short term, OEM enterprises are expected to take this opportunity to optimize product structure, ASP and gross profit margin are expected to increase; In the long term, the growth that domestic substitution brings to the local foundry sector should take precedence over industry cyclicality.

Although the impact of the chip shortage market is serious, but combined with the development of some industries, it is not completely bad. Industry analysts believe that in the current chip market shortage situation continues, the local chip industry chain is expected to accelerate the market expansion, improve product shipments, to meet the market demand. Domestic micro – control chip manufacturers, also in this wave of market demand high tide ushered in a rapid development opportunities.