Dear Valued Customer,
On behalf of everyone at Microtips Technology, we sincerely appreciate your continued trust, support, and partnership. We remain committed to providing high-quality display solutions, dependable delivery, and outstanding customer service.
The global electronics industry is once again experiencing increasing supply chain challenges. Driven by the rapid growth of Artificial Intelligence (AI), expanding demand for computing and data storage products, geopolitical uncertainties, and foreign exchange fluctuations, the availability and cost of many electronic components have changed significantly throughout 2026.
The greatest impact has been on Display Driver ICs (DDICs) and other semiconductor devices. Despite our proactive purchasing efforts, global demand has exceeded manufacturing capacity, resulting in extended lead times and supplier allocation programs. Many semiconductor manufacturers have also implemented multiple price increases during the year.
In addition, other key materials used in our display products—including PCB assemblies, ITO glass, polarizers, resistors, capacitors, connectors, and other electronic components—have experienced continued cost increases and longer procurement lead times.
Current market trends include:
| Component Category | Typical Cost Increase |
| Display Driver ICs & Other ICs | 20%+ |
| ITO Glass, Polarizers & LCD Materials | 20%+ |
| PCB Assemblies | 20%+ |
| Passive Components & Connectors | 30%+ |
| LEDs | 5–10% |
Microtips continues to leverage its manufacturing operations in Taiwan and Vietnam, working closely with our global supplier network to secure critical component allocations, increase inventory where practical, and minimize supply disruptions. While these efforts have helped reduce the impact on our customers, the continued escalation of material costs can no longer be fully absorbed.
Accordingly, product pricing for purchase orders may be adjusted beginning July 2026, depending on the specific components and materials used in each product. Updated quotations will be provided as required.
To help ensure uninterrupted production, we strongly encourage customers to review their anticipated requirements for the next 12 months and place purchase orders or blanket orders as early as possible. Early demand visibility enables us to secure long-lead materials, reserve manufacturing capacity, and better support your production schedules. Based on current market conditions, customers should also anticipate lead times of 20–24 weeks on selected products.
We appreciate your understanding and continued partnership. If you have any questions regarding current quotations, production schedules, or future demand planning, please contact your Microtips sales representative.
Thank you for your continued confidence in Microtips Technology.
Sincerely,
Mohammad Reza Arfin
General Manager
Microtips Technology LLC
Industry References
• Astute Group – Rising Component Lead Times Pressure Q3 Manufacturing Schedules
https://www.astutegroup.com/news/general/rising-component-lead-times-pressure-q3-manufacturing-schedules/
• Accuris Technologies – Why Electronic Component Costs Are Rising in 2026
https://accuristech.com/blog/blog-electronic-component-cost-increase-2026/
• UTMEL – 2026 Passive Components Market Update
https://www.utmel.com/blog/news/semiconductor/2026-passive-components-market-update-sourcing-tactics-amid-price-hikes-and-lead-time-extensions
• Sitronix IC cost adjustment notice
Sitronix IC cost adjustment notice.pdf
• UltraChip LCD Driver IC Price Adjustment Notice June 2026
UltraChip LCD Driver IC Price Adjustment Notice June 2026.pdf
• UltraChip LCD Driver IC调价通知
UltraChip LCD Driver IC调价通知.pdf