Chip Prices: No Relief in Sight

Chip supplies are loosening up, according to analysts, which in normal times would also ease pricing. But the electronics supply chain is still far from normal.

Prices continue to increase in certain sectors of the semiconductor market. Intel is the latest chip maker to announce a price hike – some estimates are as high as 20 percent. More than a half dozen major chip suppliers have increased prices within the past year.

Microprocessor supplies will remain under pressure for some time, according to industry sources. “There’s such a broad range of component classes that any given class may be in over supply or under supply,” said Paul Romano, COO for global distributor Fusion Worldwide. “The market is still in a significant state of imbalance. There are still supply issues in the automotive, industrial and automation sectors.”

Source: Chip Prices: No Relief in Sight