Reached a long-term agreement with TSMC: Realtek network chip supply

According to the news of the Core Research Institute on January 6, due to the tight supply of network chips, Realtek has reached long-term agreements with partners such as TSMC and UMC, and will strengthen the ties with GF and SMIC. At present, Realtek has reached cooperation with Tesla and other car manufacturers and obtained a large number of orders, at the same time, the company has also received orders for network chip solutions such as Wi-Fi 6 with Huawei and other companies, and has obtained nearly two years of order commitments from laptop suppliers.

Edited by the Institute of Core Research

Massive orders covering various sectors such as PCs, mobile phones, telecommunications equipment and automobiles have strained Realtek's chip supply, which is exacerbated by the current general shortage of the semiconductor industry worldwide. This directly led to realtek signing long-term cooperation agreements with various partners to ensure that there were no problems in terms of capacity.

According to sources in the supply chain, network chips for consumer applications are expected to reach market balance in 2022, but the demand for network chips for infrastructure, automotive, commercial, industrial and other fields will gradually grow. The rise in demand has led not only to the need for Realtek to enter into long-term agreements with partners to ensure stable supply, but also to the rise in foundry costs, for which Realtek has raised the offer of Wi-Fi SoC and Ethernet chips in the first quarter of this year.

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