Taiwan MCU manufacturer Holtek formally announced recently, adjust the price for all series product, the overall increase of about 10% to 20%. The pricing for the overall, systematic, cover all product lines and customer category, is no longer limited to the local adjustment of the previous low margin projects.

Holtek said the company in March this year has begun to adjust some of the low margin project price, most of the rising costs absorbed by the in-house. However, after entering in the second half, encapsulation link face cooperation manufacturers start the second and the third round of price increases, the wafer foundry end also clear forecast in 2027 will further increase contract offer. On both ends of wafer manufacturing and assembly costs under double extrusion of synchronous upward, Holtek have to reasonable cost pressure in order to end users. Recent will according to different product categories, comprehensively raise order for quotation.

In spite of price adjustment of short-term market adaptation, Holtek operating optimism in the second half, both revenue and profitability is expected to better than the first half of the year. Among them, in the third quarter is expected to achieve quarter-on-quarter growth, is expected in the fourth quarter and the third quarter. Holtek stressed that in the eight and the 32-bit MCU in the field of long-term technology accumulation, the ability of mature application solutions and solid customer relationship, provides support for the pricing strategy.

Industry background and the impact analysis

In 2026 the global semiconductor industry chain is experiencing a rare systemic price cycle. From the wafer foundry, memory chips, sealing test to simulate chip and MCU, more than 50 companies intensive adjustment notice. 8 inches mature process capacity for AI demand siphon effect remains tense, the world can output is expected to shrink, contract price generally increases ranging from 5% to 20%. At the same time, the encapsulation link is caused by the rise of raw material and labor costs, price adjustments have been implemented. In this context, holtek comprehensive pricing is not a case, but the inevitable result of the industry cost conduction.

As an important part in the field of Taiwan MCU IDM, Holtek the price adjustment, or will accelerate the downstream customers of purchasing strategy and rhythm to evaluation and optimization. For the terminal market, consumer electronics, home appliances and industrial control fields such as cost pressures or will further revealed.

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