On January 27, 2026, Cmsemicon, a supplier of intelligent control solutions, officially issued a price increase notification letter, announcing immediate price adjustments for its core product lines including microcontrollers (MCUs) and NOR Flash, with increases ranging from 15% to 50%. This represents another significant market move by Cmsemicon following its recent entry into the memory chip sector.

Background and Strategic Rationale

In the notification letter, Cmsemicon explicitly stated that this price increase stems from multiple pressures, including persistent tight supply across the chip industry and substantial rises in raw material and packaging costs. Specifically, the delivery cycle for packaged finished products has been significantly extended, while lead frame and testing costs continue to climb, resulting in a substantial overall cost increase compared to previous periods. Cmsemicon emphasized that if costs undergo further significant fluctuations, product prices will be adjusted accordingly.

Notably, this price increase came just one week after Cmsemicon announced its entry into the memory sector. On January 20, the company launched its first 4Mbit low-power SPI NOR Flash chip (model CMS25Q40A), officially filling the gap in its Flash product portfolio. This product adopts a standard SPI interface, supports clock frequencies up to 120MHz, and features low cost, low power consumption, and non-volatile data retention, making it suitable for embedded MCU program storage, IoT terminals, and smart hardware configuration storage applications. This "MCU + Memory" strategic synergy enables Cmsemicon to provide customers with more comprehensive intelligent control solutions.

Goke Microelectronics Follows with Up to 80% Increase

Cmsemicon's price adjustment is not an isolated case. During the same period, Goke Microelectronics, a domestic storage control chip company, also issued price increase notifications to customers, with even more aggressive hikes. According to the notice, effective January 2026: KGD (Known Good Die) products with 512Mb stacked packaging increased by 40%, 1Gb KGD products by 60%, and 2Gb KGD products by 80%.

Goke Microelectronics pointed out that tight supply across the memory chip industry is expected to further widen the supply gap for KGD chips used in stacked packaging. Combined with continuous cost increases in substrates, lead frames, and testing processes, the company's cost pressures have exceeded profitability thresholds. It is worth noting that Goke Microelectronics' 2025 performance forecast shows a net loss attributable to shareholders of 180-250 million RMB, partly due to the failure to adjust prices in a timely manner earlier to absorb rising raw material costs.

Conclusion

Cmsemicon's 15%-50% price increase, coupled with Goke Microelectronics' maximum 80% adjustment, signals that chip companies are proactively responding to cost restructuring and supply-demand imbalances in the global semiconductor supply chain. Against the backdrop of advancing "MCU + Memory" strategies intertwined with industry cyclical fluctuations, Cmsemicon's price adjustment represents both a necessary measure to maintain profitability and reflects the mature response of China's semiconductor industry to market volatility on the path toward technological self-reliance.

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