Major IDMs Rohm and NXP to Raise Prices

In accordance with a report from Taiwan's Electronic Times, effective October 1, 2022, Rohm Semiconductor, a prominent Japanese IDM entity, will implement a 10% price adjustment for both new and existing products within its IC agency, system, and power component supply chain. This adjustment applies differentially across various product lines. Concurrently, there are indications of NXP, an international leader in automotive chip manufacturing, contemplating a price increase for automotive chips.

Rohm, a distinguished Japanese IDM specializing in power semiconductor production, particularly in silicon carbide power semiconductors, has been strategically shifting its business focus towards automotive applications. Conversely, NXP stands among the premier global automotive chip manufacturers, with its primary offering being automotive-grade MCUs.

Insiders within the power semiconductor industry, as reported by Digitimes, acknowledge the structural shortages in automotive chips, with power semiconductors and MCUs currently experiencing relatively constrained supply. Reports indicate that lead times for automotive IGBT from major IDM players still exceed 50 weeks. Speculation within the supply chain suggests that the upward trend in prices for automotive chips, encompassing power semiconductors, may persist into 2023.

It is noteworthy that NXP's automotive department witnessed a remarkable 36% year-on-year revenue increase, amounting to $1.713 billion, during Q2. Fueled by robust demand in segments such as automotive chips, the second-quarter revenue surge of 36% to $1.713 billion positions NXP's third-quarter financial forecast to exceed initial expectations.