All posts by: Microtips Technology

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:

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

SUPPLY CHAIN ADVISORY BULLETIN
Advance Planning Recommended for 2026-2027 Production Requirements 

Dear Valued Customer,

Microtips Technology continuously monitors global supply chain conditions to help our customers plan effectively and minimize the risk of production disruptions.

Recent reports from multiple electronics industry organizations indicate renewed tightening in the global semiconductor and electronic component supply chain. Increasing demand from AI infrastructure, industrial automation, automotive electronics, medical devices, and energy management systems is placing additional pressure on semiconductor manufacturing capacity and the availability of critical electronic components.

Industry analysts are reporting:

• Increasing lead times across numerous semiconductor and electronic component categories.
• Continued allocation of selected Display Driver ICs (DDICs), memory devices, power management ICs, and passive components.
• Rising material, manufacturing, and logistics costs resulting in ongoing price increases throughout the electronics supply chain.
• Continued market uncertainty expected throughout 2026 and potentially into 2027.

Although Microtips Technology is working closely with our manufacturing partners to secure component allocations and maintain inventory wherever practical, certain market conditions remain outside our control.

Customer Planning Recommendations

To help ensure uninterrupted production and improve supply continuity, we strongly recommend that customers:

• Review anticipated production requirements for the next 12 months.
• Update demand forecasts with your Microtips sales representative.
• Place purchase orders or blanket purchase orders as early as practical.
• Communicate significant demand changes promptly to allow adequate material planning.

Early demand visibility enables Microtips to secure long-lead components, reserve manufacturing capacity, and better support scheduled production requirements.

Important Customer Advisory

Based on current industry conditions, customers should anticipate:

• Lead times on selected products may extend to 20–24 weeks, depending on semiconductor and component availability.
• Product pricing may require adjustment if significant increases are implemented by semiconductor manufacturers or electronic component suppliers.
• Early purchase commitments are strongly encouraged to improve supply continuity and reduce the risk of production delays.

Microtips Technology remains committed to providing reliable supply, responsive customer support, and proactive communication as market conditions evolve. We appreciate your continued confidence and partnership, and we encourage you to contact your Microtips sales representative to review your forecast and production schedule.

Thank you for your continued business.

Sincerely,

Reza Arfin
General Manager
Microtips Technology LLC
Orlando, Florida USA
Office Phone: 888-499-8477, Ext 101
Mobile Phone: 407-758-1095
www.microtipsusa.com

SUPPLY CHAIN ADVISORY NOTICE
Display Driver IC Availability, Electronic Component Lead Times, and Future Demand Planning

Dear Valued Customer,

At Microtips Technology, we remain committed to providing our customers with high-quality display solutions, reliable delivery performance, and transparent communication regarding market conditions that may impact product availability and pricing.

Over the past several months, the global electronics industry has experienced renewed supply chain challenges driven by increasing demand across the automotive, industrial, medical, telecommunications, energy management, and AI-related markets. As a result, several critical electronic components used in LCD modules, TFT displays, touch panels, OLED displays, and related products are experiencing supply constraints, extended lead times, and cost increases.

A significant area of concern involves Display Driver ICs (DDICs), including components supplied by major semiconductor manufacturers such as Sitronix and other industry-leading suppliers. These devices are essential to the operation of many display products and have become increasingly difficult to secure due to capacity limitations and growing worldwide demand.

In addition to display driver ICs, the market is also experiencing increased pressure on:

• Semiconductor devices and integrated circuits
• Power management components
• Touch controller ICs
• Passive components including MLCCs and specialty capacitors
• PCB materials and electronic assemblies
• Raw materials and logistics services

Many suppliers throughout the electronics industry have already announced lead time extensions and cost adjustments, while others continue to evaluate future market conditions.

To help ensure uninterrupted supply and maintain production continuity for our customers, Microtips Technology is actively working with our manufacturing partners in Taiwan, Vietnam, and other global locations to secure material allocations and increase strategic inventory levels wherever possible.

However, due to factors outside of our control, customers should be aware of the following potential impacts:

Lead Time Outlook: Current lead times for certain products may extend beyond historical norms. Depending on product configuration, material availability, and semiconductor allocation status, lead times may increase to 20–24 weeks or longer for selected products.

Potential Pricing Adjustments

• Due to ongoing increases in semiconductor, electronic component, raw material, and logistics costs, Microtips Technology may be required to adjust pricing on existing quotations, future quotations, and long-term supply programs when significant cost increases are imposed by our supply chain partners.
• Quoted pricing is based on current material costs and availability and may be subject to adjustment if significant increases are imposed by component manufacturers prior to order placement or shipment.
• While we will continue to make every effort to absorb and minimize these increases whenever possible, certain market-driven cost adjustments may be unavoidable.

Customer Planning Recommendations

To minimize potential disruptions and secure production capacity, we strongly recommend that customers:

• Review anticipated product requirements for the next 12–18 months.
• Provide updated forecasts as early as possible.
• Place purchase orders and blanket orders at the earliest opportunity.
• Communicate any significant changes in demand projections promptly.
• Work closely with Microtips Technology to establish inventory and supply strategies for critical programs.

Early visibility into customer demand allows our team to secure component allocations, reserve manufacturing capacity, and better support your long-term requirements.

Microtips Technology remains committed to supporting our customers through these challenges, proactive planning will be critical to ensuring supply continuity.

Accordingly, customers should anticipate:

1. Potential lead time extensions of 20–24 weeks on selected products and programs.
2. Possible future price adjustments resulting from increases in semiconductor and electronic component costs.
3. The need to evaluate demand requirements for the next 12–18 months and place purchase orders as early as possible to secure material availability and production capacity.

We sincerely appreciate your continued partnership and trust in Microtips Technology. Should you have any questions regarding your current programs, forecasts, or future requirements, please contact your Microtips sales representative.

Sincerely,

Reza Arfin
General Manager
Microtips Technology LLC
Orlando, Florida USA
Office Phone: 888-499-8477, Ext 101
Mobile Phone: 407-758-1095
www.microtipsusa.com

Dear Valued Customer,

We would like to proactively share an important update regarding the current global electronics supply chain environment.

Over a very short period, the supply chain for critical electronic components has become increasingly constrained. While this situation is impacting overall material costs, the more significant concern is the tightening allocation of key components, particularly display driver ICs.

One of our major IC suppliers, Sitronix, has formally issued a Price Adjustment Notice effective April 1, 2026, citing rising wafer fabrication, packaging, testing, and overall semiconductor supply chain costs. The notice specifically highlights a 15% increase on display driver IC product categories.

In addition to ICs, we are also seeing cost increases across several other essential materials throughout the supply chain. These changes are not isolated to a single supplier, but rather reflect broader structural shifts within the semiconductor and display ecosystem.

At Microtips, our priority remains to support your production continuity with stable supply and transparent communication. Our team is actively working with factory partners and key suppliers to secure long-term component allocation and minimize disruption wherever possible.

That said, this environment may impact:

Future product pricing
Lead times on certain part numbers
Forecast and allocation requirements for long-lead components
Last-time-buy recommendations on select products
To best support your programs, we strongly encourage customers to share updated forecasts and upcoming demand plans as early as possible so we can reserve material allocation in advance.

We truly value your partnership and appreciate your understanding as we navigate these market conditions together. Your Microtips team remains committed to providing timely updates and helping develop the best supply strategy for your projects.

Please feel free to reach out to your sales contact if you would like to review specific part numbers, forecasts, or future order timing.

Regards,

Reza Arif Arfin
Office Phone: 888-499-8477, Ext 101
Mobile Phone: 407-758-1095
www.microtipsusa.com