Dear Customer, I hope this letter finds you well as we near the end of this unprecedented year.
The ongoing COVID-19 pandemic continues to create challenges throughout the world economy, including the semiconductor industry. At ST, among other challenges, many of our materials suppliers are struggling to meet our demand - resulting in cost increases and aggressive commercial terms to maintain our supply of these scarce materials.
Given this situation, we are obliged to inform you that we are increasing prices across all product lines effective from 1st of January 2021.
In addition, we are at the same time experiencing strong demand across all product lines.
Therefore, despite our significant capital investments, we are allocating our production capacity based on your firm order placement and our best demand visibility to maximize the efficiency of our manufacturing operations.
Your ST account responsible is available to share with you the details and will support you for implementation.
Thank you for your understanding and cooperation.
Marco Cassis President Sales & Marketing, Communication and Strategy
Jerome Roux Executive Vice President Asia Pacific Sales & Marketing