The following price increase notice from Chris Allexandre , Senior Vice-President Sales, Marketing & Business Operations, Renesas IIBU hasbeen sent 1/11/21:
Price Increase Notice
Subject: Price Increases on Mature Renesas Electronics Products
Publication Date: January 11, 2021
Effective Date: Refer to product list attachment
To our valued Distribution Partners:
As we begin the new year, 2021, we hope this letter finds you, your family, and your teams healthy and safe. As we continue to navigate the challenges of COVID-19, we remain rigorously vigilant and compliant to local government rules and regulations in keeping our Renesas family and suppliers safe.
Based on trends seen across the industry, the COVID-19 worldwide pandemic has caused an unprecedented and severe impact on semiconductors' supply chain. With constant strain on demand, we continue to see capacity limitations, mostly in packaging and raw materials, which has led suppliers to increase costs. Due to these recent and significant increases in raw materials and packaging (substrate) costs, as well as increased inventory costs and risks associated in carrying legacy products with longer lead times in raw materials, we have carefully evaluated the impact to our manufacturing costs. Based on our analysis, and in order to sustain continuity of our supply and long-term manufacturing, it is imperative we increase pricing on some of Renesas Electronics' legacy products. This increase will be effective March 1, 2021, for most of the products affected. To minimize impact while best supporting our customer base, we are targeting the price increase to mature products. Our goal is to assure our customers that this implementation will not impact the majority of the newer, focused products they are using in their project designs and/or manufacturing (except a few, limited exceptions). Kindly refer to the product list attachment for the affected orderable part numbers.
We understand these are difficult actions, and they are necessary given the current semiconductor supply chain situation. Additionally, we believe these actions will help ensure continuity of supply, as it remains our top priority to serve our customers with their demand to the best of our ability now, and in the future. If you have any questions pertaining to this notice, please do not hesitate to contact your local Renesas Electronics Sales Representative for clarification.
Thank you for your understanding and cooperation.
Sincerely,
Chris Allexandre
Senior Vice-President Sales, Marketing & Business Operations
Renesas IIBU
