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Home » Market Update » 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.

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