04 Mar 2021 -

IC design houses passing on production cost increases to clients

Rising foundry and backend quotes are prompting IC design houses to make efforts to pass on higher production costs to customers, reports DigiTimes.

The fabless firms are under pressure to raise their chip prices, as their foundry and backend partners are all raising their contract-manufacturing quotes amid tight capacity, says the report. Taiwan’s fabless chipmakers have moved to negotiate with their clients about raising prices to reflect the rising manufacturing costs, the sources noted.

Taiwan-based MCU and analog IC specialists have already managed to raise their chip prices, adjustments that will take effect starting from the second quarter, the sources indicated.

Production lead times at Taiwan-based backend houses have been extended to 1-2 months from 1-2 weeks previously, the sources added. Rising backend quotes already began to weigh down some fabless chipmakers’ revenues in January, the sources said.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

Related News

14 Jun 2024 - Defence

Webinars for Defence, Military, and Aerospace Engineers 

Read more

12 Jun 2024 - General

Electronics industry surges forward into 2025

Read more

07 Jun 2024 - General

Nvidia’s dominates – for now. A look at alternatives.

Read more

06 Jun 2024 - General

The CHIPS Act’s $39 billion challenge: building Fabs is easy, finding talent is not

Read more

05 Jun 2024 - Defence

New Events Series for Defence, Military, and Aerospace Engineers 

Read more

04 Jun 2024 - General

What is Taiwan’s Silicon Shield, and is it so tough?

Read more