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Taiwan IC vendors set to raise prices

Tight supply has pushed up foundry costs, fueling pressure on IC design clients. First-tier IC design houses are now ready to increase prices for their chip solutions in first-quarter 2022. Pure-play foundry houses UMC and VIS have reported record sales for August. In the IT sector, ODMs Wistron and Inventec both sae increases in notebook shipments in August, but overall results for third-quarter 2021 may be disappointing.

Taiwan 1st-tier IC design houses poised to raise prices in 1Q22: With delivery lead times at TSMC extended to 4-5 months, Taiwan's first-tier IC design houses have notified customers about further price hikes for their chip solutions starting the first quarter of 2022, according to industry sources.

UMC, VIS see revenue hit another record highs: Pure-play foundry United Microelectronics (UMC) saw its August revenue hit a record high for the fourth consecutive month, while revenue at fellow foundry company Vanguard International Semiconductor (VIS) also came to the highest monthly level.

Wistron, Inventec enjoy shipment growth in August but may post disappointing performance in 3Q21: Notebook ODMs such as Wistron and Inventec may experience lower-than-expected shipments in the third quarter of 2021, due mainly to the ongoing IC shortages disrupting their deliveries, despite their on-month shipment growth in August, according to industry sources.