In short supply and hot demand, chip prices could keep rising all year

An employee oversees a fabrication process at Jiejie Microelectronics, a manufacturer of semiconductors, in Nantong in China’s Jiangsu province.

Synopsis

As Covid-19 swept the world last year, surging demand for remote working, home entertainment, and online education products and services led to a run on consumer electronics like smartphones, PCs, and TVs. This, in turn, pushed up demand for the chips they use.

By Guo YingzheSemiconductor prices are expected to continue rising throughout 2021, as a combination of supply disruptions and robust demand leave their mark, and growing input costs ratchet up pressure. A rash of suppliers raised prices this month, beginning upstream with companies like Japan’s top silicone producer, Shin-Etsu Chemical Co. Ltd., which in March announced a price increase of between 10% and 20% for all silicone products starting

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