Recently, some media exposed a "price increase contact letter" allegedly issued by a domestic manufacturer. The letter stated: Due to the shortage of MOS tubes and IC wafers, the price of raw materials has risen sharply and the company's costs have risen sharply; in order to alleviate the cost pressure, since 2020 From October 1, 2010, the prices of MOS tubes and IC series products will be increased by 20%-30%. According to international electronic business observations, this is not the first time that MOS prices have been raised recently. Prior to this, similar news has been spread including driver ICs and security chips... News on the 24th, recently, some media have reported on MOS and driver IC prices. The news aroused close attention of the market. These reports all mentioned the "imbalance of supply and demand" and the "increasing cost of raw materials." The price of MOS tube and IC series has increased by 20~30%? A few days ago, some media revealed a "price increase contact letter" allegedly issued by a domestic manufacturer. The letter was issued on September 21, 2020. The letter pointed out that due to market changes, MOS tubes and IC wafers are in short supply, and the price of raw materials has risen sharply. This has led to a sharp increase in the cost of the company and the gap between supply and demand. In fact, starting from October 1, 2020, the prices of MOS tubes and IC series products will be adjusted upwards by 20%-30%. According to the international electronic business situation, the above-mentioned contact letter is from a domestic manufacturer integrating R&D, design, packaging, testing and sales. The main products include power management chips, low, medium and high voltage MOS tubes, single-chip microcomputers and power devices, and provide TO/SOD/ Packaging services such as SOP/SOT/QFN/DFN are widely used in smart phones, Internet of Things, consumer electronics, power management, automotive lithium batteries, industrial control and other fields. In response to the above-mentioned price increase information, the editor of International Electronic Business Information has sent a letter to verify it, and the manufacturer in question has not yet responded. "The profit margin of MOS tube is not large. The cost increase of this part has little effect. The relevant demand terminal can use the profit of the chip to offset this part of the increase. At present, most domestic MOS tubes are sold directly, of course, including this one. Some of them also have agents, and the impact is very limited. I am more concerned about whether the rise in raw materials will affect the prices and delivery dates of some currencies, and I will pay more attention to several foreign manufacturers and material market trends." A market participant believes that domestic production The price increase news of MOS factory will not have much impact on the spot market, but will pay close attention to the situation of foreign original factories and upstream of the supply chain. Has the HiSilicon security chip increased by more than 10 times? At the same time, before the "Huawei ban" came into effect, HiSilicon IPC chips also reported that prices were rising due to tight supply. The market believes that this is directly related to HiSilicon’s position in the domestic security market. Data shows that about 70% of the domestic IPC market is occupied by HiSilicon. Take the Hi35 series of HiSilicon chips as an example. The chip, which is usually priced at about 150 yuan, has increased by more than four times, and the transaction price has reached 600 yuan. Hi3559A, which is positioned as a high-end, was once fired from 500 yuan to more than 3,000 yuan. Recently, the unit price has soared to about 6,000 yuan. However, according to several agents, HiSilicon’s current full range of chips are out of stock, and the possibility of long-term supply is very small. They believe that the price increase in the market is "prices but no market". It is recommended that the industry stay sensible and not blindly. Follow suit. "Those who have goods on hand, it depends on whether they have made a profit or a loss this year." An anonymous industry practitioner pointed out that this year's industry is in a downturn. "Injury", coupled with the severe development of overseas epidemics and other factors, which led to the lack of peak seasons, and demanders’ willingness to buy goods were not as strong as the same period last year. The high price is lowered and sold to the other party. As long as the goods are in hand, it will be stable (you will not lose)!” The above-mentioned industry pointed out that the price increase of HiSilicon chips is directly related to its position in the security market. Public information shows that HiSilicon’s product line in the security field has covered front-end IPC SoC to back-end DVR/NVR, and is one of the “main players” in this field. It is understood that the security chip market structure is established, and the domestic IPC market share is dominated by the three major manufacturers of HiSilicon, Texas Instruments and Ambarella. According to statistics, in 2016, HiSilicon occupied 62% of the domestic IPC market, and now it is firmly established in the global security market with its self-developed ISP module, with a market share of 70% and a video recording market share. Over 90%. It is reported that in addition to the Kirin chip mounted on Huawei mobile phones, HiSilicon has an advanced position in the security video surveillance chip (IPC SoC) in China, and its product performance is better than domestic and foreign competitors. It is worth mentioning that in the global semiconductor TOP10 list for Q1 2020 released by IC Insights in May this year, HiSilicon ranked among the top ten semiconductor manufacturers in the world for the first time with sales of approximately US$2.7 billion. In the 10th place, the top 9 companies are: Intel, Samsung, TSMC, Hynix, Micron, Broadcom, Qualcomm, Texas Instruments and Nvidia. The foundry capacity is tight, and the display driver IC is out of stock until the middle of next year? In addition, following the full load of 8-inch wafer foundry capacity and raising foundry prices, Taiwanese media recently reported that because 8-inch wafer orders are scheduled to next year, the tight capacity situation continues, and some demand orders flood into 6-inch wafer foundries. , Or may take advantage of the trend to push up 6-inch wafer foundry prices. The report pointed out that the impact of the US sanctions and the epidemic continues. Under this background, the situation of high-priced downstream orders is increasing. Due to the promotion of 8-inch household production capacity, orders have begun to flood into 6-inch wafers. Taiwanese foundry manufacturer MOSEL (MOSEL) recently The statement does not rule out the possibility of negotiating with customers to increase the price of foundry. Since semiconductors with lower gross profit can't grab 8-inch wafer production capacity, they have to turn to. Now Mosil's production capacity is also fully loaded. According to reports, the demand-side orders are from mainland China, and it is revealed that IC demand orders will be given priority, and the demand for MOSFETs will be considered as appropriate. According to reports, the current increase in wafers is more than 10%, and the price increase of display driver ICs depends on the ability of different manufacturers to absorb costs. For related manufacturers/channel merchants, the increase in the volume and price of driver ICs is good news, especially for merchants with a certain inventory level. On the other hand, due to the continuous imbalance of 8-inch wafer foundry production capacity, the related demand delivery has been delayed, which has now been extended to 4 months. As a result, most IC designers have already begun to actively increase their prices to reserve capacity early, and there are reports that quotations will increase by 10%. The rise in foundry prices has also made some IC design houses decide to take the initiative to follow up with the increase. According to industry analysts, due to the tight upstream 8-inch wafer foundry production capacity, the display driver IC supply gap has reached 15% to 20%, which is expected to be alleviated in mid-2021. It is understood that prior to this, strong demand including power management chips, panel driver ICs and sensors, coupled with the limited new capacity of the foundry production line, made 8-inch wafer production capacity tight, and UMC and the world’s advanced 8-inch wafers The Yuan foundry is fully loaded. Sources in the supply chain revealed that several OEMs may also take some orders from Qualcomm when their production capacity is full. Some sources pointed out that due to concerns about the possibility of SMIC being sanctioned by the United States, the former's second largest customer, which is currently seeking to include TSMC, UMC and World Advanced, is currently seeking to negotiate transfer orders. However, this rumor has not been confirmed by related parties, and the specific situation remains to be seen.