GE Current, Acuity Brands, and TSMC announce price increases
According to foreign media reports, GE Current, A Daintree company recently announced another price increase. The company said that this year, every industry continues to be affected by unprecedented commodity inflationary pressures and component supply challenges. During this year, the company has been trying to minimize the impact of product price increases on customers; however, cost pressures have not abated. Therefore, the company will adjust the price as follows:
The price of all LED lights and control devices increased by 5%. The price increase will take effect on October 1, 2021; the price of all LED lamps and poles will increase by as much as 10%. The increase will take effect on October 1, 2021.
Acuity Brands announces another price increase
Acuity Brands said that this year, many industries, including lighting, have been affected by rising costs of raw materials, freight, electronic component supply and other inflationary pressures. Although the company strives to limit the increase in these costs, it can still feel the impact of rising costs, especially for some non-North American products, which are disproportionately affected by rising freight and logistics costs.
Therefore, the following price adjustments are announced: starting from September 13, 2021, some stock products will increase in price. The AQD manager will provide a list of affected products and the percentage of price increases.
TSMC's price increase triggers a "price increase wave" for chips
In addition to the lighting downstream market, a new round of chip "price hikes" is also approaching.
Further price increases in the global semiconductor chip market are inevitable. A few days ago, TSMC announced a 10% to 20% price increase in its foundry business, and the price increase will take effect in the first quarter of 2022.
Regarding the internal cause of TSMC’s price increase, some industry analysts said that it mainly involves two aspects. The first is to increase the gross profit margin. The company's gross profit margin in the second quarter was 50%, a decrease of 2.4 percentage points from the previous quarter and a decrease of 3 percentage points from the same period last year. Second, in the context of a shortage of cores, TSMC had previously misjudged the demand for mature processes, which led to a reduction in the market share of mature processes in the near future.
Now, Samsung has officially followed up, and the price will also increase by 15%-20%. According to reports, Samsung has notified customers that it will increase foundry prices in the second half of this year. People familiar with the matter said that Samsung plans to increase foundry prices by 15%-20%. The specific price increase depends on the customer's order volume, chip type and contract period. The new price will come into effect in 4 to 5 months.
The price increase of TSMC and Samsung also reflects the fact that the global core shortage will still be difficult to alleviate in the future.
