17 May 2021 -
 General

IC prices set to rise 10-20% in 2022, says Counterpoint

SemiMedia says a report by technology researcher, Counterpoint, suggests the continued shortage in semiconductors will lead to a 10% to 20% price increase in IC prices in 2022.

“Since the second half of 2020, the global semiconductor supply chain has been subject to severe capacity constraints due to the backlog of demand in different industries. Foundry capacity remains largely booked with fully-loaded utilization rates across different process nodes. Counterpoints’ checks suggest some IC design companies have already experienced 30-40% price hikes in certain product categories in 200mm foundries when compared with H2 2020,” reports SemiMedia

The report shows that TSMC has raised its 2021 capital expenditure target to 30 billion U.S. dollars (from the previous guidance of $25-28 billion in January 2021), with 80% of this being meant for advanced node investments (3/5/7 nm), 10% for advanced packaging services and 10% for specialty technologies.

During the Q1 2021 earnings call, TSMC also reaffirmed its $100-billion capex plan for 2021-2023, mainly supported by customers’ promising outlook and commitments, which could translate into 10-15% CAGR of the USD revenue during 2020-2025.

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

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