Top driver IC makers such as Media Tek. Inc and Silicon Labs have announced price increases of 10 to 15 percent

     It was recently revealed that top driver IC manufacturers such as Mediatek and Silicon Labs have announced price increases of 10-15%. This is due to the lack of global semiconductor supply due to COVID-19 and the sudden increase in demand for electronic products.

     In the previous semiconductor "winter", the driving IC industry was severely impacted. Among them, due to the 2022 inventory decline and other losses as high as NT $2.497 billion, driving IC big factory Dun Tai in the third quarter of a big loss, the first three quarters of a cumulative loss of NT $1.941 billion. Duntech was forced to announce layoffs and wage cuts, while others in the industry were forced to cut contracts to stop the bleeding.

     The cost of manufacturing drive ics, which are crucial for controlling motors, displays and other electronic components, has increased because of shortages of raw materials and rising production costs. As a result, companies are struggling to meet demand, and price increases are seen as necessary to keep pace with rising costs.

     Higher prices will have a significant impact on supply chains, especially for companies that rely heavily on these manufacturers. End-users are also likely to feel the impact of higher prices for electronics and other devices. Companies have reported longer lead times and supply chain disruptions, and these problems are expected to continue in the coming months.

     Mediatek, one of the world's largest driver IC manufacturers, said their price increases are necessary to maintain the quality of their products and ensure they can continue to deliver products at scale. This is a difficult decision for many manufacturers, but it is vital to ensure that their businesses can continue to run smoothly in the face of ongoing shortages.

     All that said, a 10-15% price increase for top drive IC makers like Mediatek and Silicon LABS is not surprising given the current situation. These companies need to cover rising costs and maintain quality standards. However, this increase will have a significant impact across the supply chain and could lead to longer lead times and higher prices for end users. It remains to be seen how long the current shortage will last and what further steps these manufacturers will take to mitigate the impact on the industry.