08 Jan 2021 -

Pricing pressure in semiconductor supply chain

Semiconductor prices are tipped to rise as tight capacity and strong demand is felt up and down the supply chain.

Taiwan’s leading display driver IC (DDI) vendor, Novatek Microelectronics, is expected to take the lead to raise its quotes soon to reflect increased foundry costs, which may send its revenues, gross margins and net earnings hitting new highs in first-quarter 2021, according to industry sources.

Manufacturers dealing with rising manufacturing and raw material costs will be looking to pass the increased costs onto clients, according to reports by DigiTimes. SMIC is facing insufficient supplies of chemical raw materials and some crucial consumables for use in chip fabrication. The US trade ban against China-based SMIC has also restricted the pure-play foundry’s capability of obtaining semiconductor equipment for its process technology advancements.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than 27 years 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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