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Industry News:UMC, TE CONNECTIVITY (TE) announced price increases in January 2022

December 31, 2021

Latest company news about Industry News:UMC, TE CONNECTIVITY (TE)  announced price increases in January 2022

The shortage of foundry capacity continues, most OEMs will launch a new wave of price increases, including foundries UMC, Renesas Electronics, ADI, Tyco Electronics, Toshiba, Qualcomm, Melexis, and West Dayton Lighting and others have fired the "first shot" of price increases, and have announced that they will increase product prices from January 2022, ushering in the first wave of price increases in the new year!


UMC(United Microelectronics Corporation): Increase by 8-12% from January 2022

latest company news about Industry News:UMC, TE CONNECTIVITY (TE)  announced price increases in January 2022  0


The demand for wafer foundry capacity continues to fall short of demand. The major wafer manufacturer UMC will launch a new wave of price increases measures, mainly for the three major U.S. customers whose revenue accounted for more than 30%, with an increase of about 8% to 12%. Effective from January 2022.


UMC's current major US customers include major manufacturers such as Supermicro, Qualcomm, Texas Instruments, and Huida, and hold orders from major European manufacturers such as Infineon and STMicroelectronics. It is understood that UMC will increase prices for the three major U.S. customers that account for more than 30% of the revenue, and mainly target customers with 12-inch fabs with 28 and 40 nanometer processes. The long-term contract will be increased in OEM prices. The increase ranged from about 8% to 12% and is expected to take effect in January 2022. UMC emphasized that this time it will indeed sign new annual long-term contracts with some customers, and adjust prices based on the current market conditions.


Recently, UMC issued a price increase notice again, announcing that it will increase the foundry quotations of all products from March next year, an increase of about 5%-10%. The price increase is targeted at small and medium-sized IC design houses, covering consumer products, laptop-related businesses and other business areas. Moreover, a number of IC design companies have confirmed that they have successively received notices from UMC for this price increase.


TE CONNECTIVITY (TE): price increase starting in January 2022


Recently, TE Connectivity(TE) issued an increase notice to customers. TE Connectivity(TE) stated that it will update prices from January 2022 to cope with the increase in freight and raw material costs in the market.


latest company news about Industry News:UMC, TE CONNECTIVITY (TE)  announced price increases in January 2022  1

TE Connectivity(TE) stated in the notice that throughout 2021, the global economy will continue to recover, resulting in supply chain constraints, capacity shortages, and continuous increases in commodity, logistics and labor costs. TE Connectivity(TE) will inevitably continue to be subjected to these unforeseen dynamic images. These major challenges have led to longer lead times and continuous increases in production and transportation costs.


Although we have taken various measures to meet customer expectations, we cannot further offset these costs. Therefore, TE Connectivity(TE) will adjust the price to reflect the dynamics of inflation that we cannot control, and the new price will apply to all shipments from January 3, 2022.


According to the market report released by Future Electronics, in the fourth quarter of 2021, TE Connectivity(TE)’s automotive connector delivery period has a clear upward trend, with a delivery period of 30-40 weeks; the price of circular connectors has an upward trend, and the delivery period 28-30 weeks; the delivery time and price of the relay are relatively stable, and the delivery time is 36-38 weeks; D-Sub connectors, PCB connectors, RF connectors and lighting connectors, these products are all relatively stable in delivery time. Between 8-18 weeks.


It is worth noting that on December 15th, TE Connectivity(TE) has issued a price increase notice to customers. The notice stated that starting from December 20th, 2021, product prices will increase by 5%-10%, and the new prices will apply to all Order.

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