Chuan Infineon sent a letter implying that the price increase and production capacity would be tight for the whole year.

Infineon is said to have recently issued a notice to dealers that the imbalance between supply and demand of semiconductor capacity will run through 2022 and that under the influence of the rising cost structure, the company can no longer absorb the increased costs on its own and intends to "distribute the burden on a broad basis."

Infineon pointed out that the global chip supply chain is still in a state of supply shortage and still faces the threat of supply chain disconnection, while Infineon is under higher cost pressure, including raw materials, energy and logistics costs, according to the Taiwan-based Industrial and Commercial Times. According to the interpretation of the industry, Infineon may give priority to high gross margin products in order to maintain the momentum of profit growth.

The industry further pointed out that as the world's major power management IC and power semiconductor suppliers, and production lines focused on automotive, industrial MCU, Infineon although there is no specific price increase action, but the intention is very clear. Once the price increase is successful, it may lead the industry to follow the price increase.