According to supply chain, in early August, Allegro Microsystems issued a notice to its customers to inform that it would increase the price of its full line of products, which will take effect from October.
To address rising input costs and additional capacity secured to serve demand, we are making modest price increases across our portfolio. We will continue to do everything within our control to contain and absorb cost increases to minimize the impact on customers.
The notice stated that in order to address the rising input costs and ensure additional capacity to meet demand, Allgegro is making a modest price increase for its product portfolio and will do its best to control and absorb the increase in costs to minimize the cost to customers. Influence.
The notice mainly includes the following.
- Allegro will increase prices by a flat percentage in all product portfolios.
- The price increase will take effect on October 1, 2021, and is applicable to new orders and existing backlogs.
- Non-cancellable and non-reschedulable terms will apply to all orders (new orders and existing orders) until further notice.
In addition, the notice also urged customers to confirm acceptance as soon as possible to maintain the continuity of delivery.
The notice urged customers to confirm acceptance as soon as possible to maintain the continuity of delivery. In addition, understanding customers’ forecasts for 2022, coupled with high-confidence orders, will help Allegro align and allocate its constrained product lines and build the right mix of products to meet customer needs.