Analog chip giant Analog Devices recently leaked a letter to its customers, announcing a price increase across its product lines starting September 25th.

The letter stated that ADI would raise prices across its entire product line, including for new orders and existing pre-orders, but did not disclose the specific increase. The price increases will take effect on September 25, 2022.

The letter stated, “Due to supply chain inflation over the past year, while we have done our best to minimize the impact on end customers and have not raised prices, we must now absorb some additional costs to maintain our gross profit margin.” ADI emphasized that the price increase is not intended to expand profit margins.

Analysts believe that ADI primarily produces high-end analog chips for heat management and thermal control, targeting the industrial and automotive markets. This, given the current weak demand in the consumer electronics market, can help mitigate some of the impact. @2022.8.30

Recently, according to Jiwei.com, a letter from AMD to its channel was leaked, announcing that AMD will increase prices for its Xilinx FPGA products by up to 25%.

In the letter, AMD stated that it will ensure its ability to support customer demand to the greatest extent possible and hopes to clear its outstanding backlog and steadily reduce lead times in 2023 to achieve the following delivery targets for Xilinx products:

Versal series (7nm): Currently standard lead times UltraScale series (16nm): Expected delivery time of 20 weeks, continuing until the end of the second quarter of fiscal year 2023 UltraScale (2 0nm): Expected delivery time of 20 weeks, continuing until the end of Q3 2023

7 Series (28nm): Expected delivery time of 20 weeks, continuing until the end of Q3 2023

Spartan-6 (45nm): Expected standard delivery time until the end of Q1 2023

Remaining Xilinx mature node products: Expected standard delivery time until the end of Q1 2023

AMD also stated that with reduced lead times and stable supply, through collaboration with suppliers, the 7 Series (28nm) products will continue in production until at least 2035, extending their lifespan far beyond the previously advertised 15-year lifespan.

With supply chain investments and increased supplier costs, AMD stated that it is necessary to increase product prices. Effective January 9, 2023, all Xilinx products, excluding the Versal series, will see an 8% price increase. Spartan-6 products will see a 25% price increase. The new prices will apply to current backlogs, future orders, quotes, shipments, and distribution.

The price increase letter is signed by Victor Peng, President of AMD’s Adaptive and Embedded Computing Division (formerly Xilinx CEO). @2022.11.25