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Recently, Renesas Electronics sent a price increase notice to its customers, stating that the current supply challenges caused by insufficient capacity, including upstream wafer capacity limitations, and downstream back-end, testing, packaging, and raw material capacity Restrictions have caused suppliers to substantially increase their costs. Renesas Electronics also stated that it has evaluated the impact on its own manufacturing costs this time, and in order to maintain the continuity of Renesas Electronics’ supply and long-term manufacturing, it has decided to increase the pricing of most of Renesas Electronics’ products and the newly acquired Dialog products. This decision will take effect on January 1, 2022.
Renesas’ supply has been tight for nearly a year, and there is still a big gap in the supply of automotive chips, and prices remain high. The price adjustment letter did not disclose the specific increase in product price adjustments made by Renesas Electronics and Dialog, but Renesas Electronics stated that it is a difficult action to understand this price adjustment, but given the current status of the semiconductor supply chain, these actions are necessary of.
In recent years, due to a loss crisis, Renesas, which has always been known for its "stability", has begun to think about it. Starting in 2017, Renesas has successively acquired chip design manufacturers Intersil, IDT, and Dialog. Competitors are growing rapidly, and Renesas’ acquisition is equivalent to buying time with money.
It is worth noting that the products raised this time include the newly acquired Dialog products of Renesas. Public information shows that Dialog's product line focuses on the power management chip market. In addition to Apple, its customers include Samsung, Xiaomi, Panasonic, etc., as well as some wireless communication businesses. Packing its advantages into Renesas Electronics can promote the growth of Renesas Electronics' power management, analog mixed signal, connectivity, industrial and standard products and other core areas.
