The storm of pricing and production reductions for semiconductor chips reportedly grew on July 1.

HONGKONG, April 27, 2023/EINPresswire.com/ -- The storm of pricing and production reductions for semiconductor chips reportedly grew on July 1. Microcontrollers (MCUs), whose costs were previously quite high and availability was limited, started to see an avalanche of quotations. Taiwanese producers are under the most pressure to lock in prices for consumer applications. mainland marketplace Even better, the top five MCU manufacturers in the world have had their prices dropped in half!

After the market conditions for driver ICs, some power management ICs, and CIS image sensors changed, MCU has grown to be another important chip under pressure to cut orders and lower prices. The demand has not been as predicted recently owing to pressures like inflation, war, rising interest rates, and other pressures, thus the stock was reduced and the price was lowered to clear it.

The market has recently reported a dramatic decline in the quotations of multinational first-line MCU producers like STMicroelectronics, Infineon, and Texas Instruments. STMicroelectronics has reduced the cost of general-purpose MCUs from $12 in March to $5 at this time, according to more information that was made public. There are also MCUs that were initially priced at more than $16 and decreased in price, which has garnered interest.

General-purpose MCU makers reportedly increased their pricing to consumers once or twice last year, according to Kynix reports. At this point, customers, distributors, etc. inventory levels are all high due to the quick changes in the global environment and the interference of variables like inflation, interest rate hikes, and cooling of terminal demand; as a result, the price of general-purpose MCUs has started to decrease.

The server, automotive, and industrial control MCU sectors, as well as those for high-end goods, all continue to develop, according to the supply chain. However, as Taiwan's MCU producers are primarily concerned with applications for consumer goods, it is challenging to avoid order reductions brought on by this wave of inventory adjustments. and pressure for price adjustments.

Additionally, the wafer foundry's employees all face cut orders, making living there difficult. The DigiTimes reports that the state of the world economy has rapidly deteriorated. Consumer electronics demand, including that for TVs, cell phones, and NBs, has declined more quickly than anticipated. The supply chains for semiconductors and electronics have seen a sharp increase in inventory, and a wave of price cuts and order reductions has extended widely.

The majority of sources admitted that TSMC had lately been the target of an air raid. A significant customer AMD reportedly dropped orders for the 7/6nm technology by around 20,000 pieces in response to the stagnant PC market, in addition to Apple's new iPhone goal shipments being reduced by 10%. It is also said that Nvidia, which has fully returned from Samsung Electronics, plans to put off buying products for a season in order to take advantage of the mining boom's subsidies.

The unnamed Taiwanese MCU plant said that consumer-oriented home appliances in the MCU area have been severely impacted by the slowdown in mainland demand. As a result, the business also attends to client demands and has case-by-case discussions about price modifications with clients. The average decline at this time is approximately It still hasn't reached the initial price before to the outbreak within 10%.

Alan Smith
Kynix Semiconductor Limited
+86 133 5296 4541
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