According to the "Electronic Times" reported that the recent car companies and foundries for 2023 offer consultation into the climax, in which a small part of the foundry for the car with a small price increase is expected to succeed, the price increase ratio is still under negotiation.

Sources said that some manufacturers tend to foundry and IDM and Tier 1 each step back, it is estimated that the year 2023 foundry offer single-digit percentage increase, but still depends on the customer, the size of the order varies. In fact, the initial negotiations with customers that, as long as the supply is smooth, the price can be "with the line on the market". It is understood that the automotive chip foundry offer in the past few years soared, because the demand sharply exceeded the supply. But inflationary pressures and other factors have clouded the outlook for demand next year, prompting automakers to re-examine risks and costs.

This comes on the heels of news that TSMC, the leading foundry, may have uncertainty about price increases next year, and that automotive chip customers are already considering renegotiating their prices.

Due to the impact of the epidemic, geopolitics, inflation and other factors, the market demand for PCs and other consumer electronic devices is rapidly slowing down, foundries are facing customer cut orders, capacity utilization has declined significantly. Automotive chip IDMs are also experiencing a shortfall in fab utilization and are likely to scale back outsourcing. Previously due to chip shortages, head down not to ask the price only to have capacity car manufacturers and chip makers seized the opportunity to renegotiate prices with foundries in the fourth quarter. Foundries due to weak demand for consumer electronic devices caused by the capacity gap, but also plans to industrial and automotive chips to make up.

Source：aijiwei