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Raw materials price keeps increasing

In order to cope with the continuous price increase of raw materials such as copper, gold, oil and silicon wafers, IDMs such as Infineon, NXP, Renesas, TI and STMicroelectronics are preparing to increase the quotations of automotive chips in 2022 by 10%-20%.

“Electronic Times” quoted the above-mentioned person as saying that more details of IDM’s new round of price increases are unclear, but automakers will definitely see chip costs rise next year. In the previous few months, the prices of some chips with severe supply shortages have risen sharply.

At the same time, China’s curtailment measures are having another major impact on the global automotive supply chain. China’s magnesium supply currently accounts for 85% of the world’s total, and Shaanxi Province is the main manufacturing base with about 50 magnesium smelters. However, according to sources, under the curtailment measures, half of them have been required to stop production, and the other half are operating at 50% capacity.

The source said that European magnesium stocks will be used up within a few weeks, and the supply interruption of this material may weaken the supply capacity of the entire automotive supply chain, because there is no substitute for magnesium in the production of aluminum alloy mechanical parts. In the past month, the import price of magnesium in Europe has risen by 75%.

It can be seen that the price increase of raw materials will continue for a long time.
For electronic products in the aftermarket, Quanzhou Minpn Electronics Co., Ltd will do its best to ensure daily production, timely supply, and guarantee the customer’s sales system, so don’t talk about how the price has risen again, but ask if there are goods available?

Quanzhou Minpn Electronic Co., Ltd 17years? fty offering Car Parking Sensors,Car Alarm System,Car Tire Pressure Monitoring System TPMS,BSM,PEPS,HUD ect.We do hope to support your business.Thank you..


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Post time: Oct-27-2021

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