Image source: digitimes
According to industry sources, due to the supply of network chips, especially Ethernet chips, real estate has reached long-term agreements with UMC and TSMC, while strengthening ties with GF and SMIC.
According to Digitimes, sources say Realtek has seen a tight supply of its Ethernet chips, which has secured a large number of orders from Tesla and other automakers. At the same time, strong orders for Wi-Fi 6 chip solutions from suppliers such as Huawei cover applications such as automotive, commercial and telecom equipment. In addition, Realtek has secured a two-year order commitment from a tier-1 laptop supplier.
"These encourage Realtek to sign long-term contracts with foundries." The source said.
Network chips for consumer applications are expected to reach market balance in 2022, but network chips used in infrastructure, automotive electronics, commercial and industrial applications will grow steadily this year, which will prompt suppliers to raise prices, according to supply chain sources. Realtek will raise its offer of Wi-Fi SoC and Ethernet chips in the first quarter of 2022 to reflect the increase in foundry costs.
(Proofreading/LL)
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