On June 1, MCU and simulated IC supplier Microchip issued a price increase notice to customers, announcing that some products will officially increase their prices on July 15, with a price increase of 7.5%.
Microchip said that the products that this price adjustment are mainly targeted at the ATTINY, ATMEGA and ATXMEGA series and 8051 series based on AVR technology. The main reason for the price increase is the rising production costs.
is calculated based on the effective time of the price increase, which is the second time Microchip has adjusted its price in 2020. On October 1, 2019, Microchip issued a price increase letter, but at that time it was overwhelming with news about TI canceling Avnet, Wen Ye, and Grand Alliance, so that the news of Microchip's price increase was overwhelmed.
Microchip Price Increase Letter Notice stated that starting from January 1, 2020, the following materials for Microchip, regardless of whether the order has been placed, as long as the shipment date is January 1, 2020, will be increased by 6.5%, and the price increase material number list will be as high as 107 pages.
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Microchip raised its financial test
3 months ago, Microchip announced the downward revision of its revenue growth rate in the Asia-Pacific region, mainly due to the current weak demand in China and the continued development of the epidemic in neighboring countries such as Japan and South Korea affecting the revenue in Asia-Pacific region.
However, as the peak of the epidemic passed, China was the first to resume work, and countries have also begun to resume work and production one after another. Microchip announced an upward review of the first quarter (April-June) financial forecast.
Microchip said that the supply chain recovers faster than the company expected after the epidemic, and customers' factories in China have resumed work in full. Customers' factories in Europe and North America have also begun to restart, including the automotive factories with the worst demand. In addition, the cancellation and delay of orders in April-June are not as serious as before. The lost capacity of Philippines factory and Malaysia contracting factory are now beginning to be gradually replenished. In terms of the stock price of
, Microchip rose 12.34% yesterday (No. 3) and closed at US$108.79. Almost all the stock prices that have fallen in recent stock market crashes have risen back.
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