Holtek Announces 10%-20% MCU Price Increase

According to Holtek Semiconductor, the company has confirmed that it will implement a comprehensive price increase across its entire microcontroller (MCU) product portfolio, marking its first company-wide pricing adjustment since the COVID-19 pandemic.

Following a price adjustment for selected low-margin products in March 2026, Holtek recently informed customers that prices for all product lines will increase by 10% to 20%, depending on the specific product category. The new pricing will apply to recently placed orders.

Since the end of 2025, semiconductor manufacturing costs have risen significantly as high-margin artificial intelligence (AI) products have taken up capacity at mature process nodes. The increased demand has driven up wafer fabrication costs as well as outsourced semiconductor assembly and test (OSAT) service fees.

Industry sources indicate that wafer prices are expected to continue rising in 2027, while OSAT companies are likely to maintain price increases through the second half of 2026.

Holtek stated that it had previously absorbed most of the additional costs internally but has now determined that further price adjustments are necessary to protect profitability.

Holtek Deputy General Manager Chien-Chou Pan said current order lead times have extended to six to eight months, meaning the financial impact of the latest price increase will mainly be reflected in the company’s revenue performance in 2027.

Pan added that the company has already incorporated expected 2027 wafer foundry price increases into its latest pricing strategy. However, Holtek does not intend to raise prices frequently within a single year, noting that excessive price adjustments could eventually affect end-market demand.

With mature-node foundry capacity remaining tight, Pan said Holtek will continue cooperating with Taiwan-based wafer foundries while expanding partnerships with mainland China-based manufacturers using 12-inch wafer processes, particularly for 32-bit MCU products.

Currently, most of Holtek’s major product lines have established partnerships with two wafer sources, allowing the company to better allocate production capacity and reduce supply disruption risks.

Holtek noted that its current order visibility is approximately six months, which is sufficient to support demand through the end of 2026 and into the first quarter of 2027. The company expects MCU shipments in 2026 to exceed 2025 levels.

Among its strongest-performing product categories are MCUs used in security and healthcare applications, driven by equipment upgrades resulting from new regulatory requirements in the United States, South Korea, and Europe.

Beyond traditional MCU markets, Holtek expects products targeting optical communication and server MCU applications to begin contributing to shipments in 2027.