According to the Nikkei Asian Review, Renesas Electronics, NXP and other chip makers are increasing semiconductor prices for automobiles and telecommunications equipment, mainly to get rid of the impact of soaring demand and limited manufacturing capacity.

Some observers expect the chip shortage will continue for six months and may affect the earnings of automakers and other companies.

Renesas, the world's third-largest automotive chip supplier, recently asked its customers to accept higher prices for power semiconductors, control voltages, and microcontrollers that control car driving. The price of these automotive chips will increase by a few percent. The chip prices of servers and industrial equipment will increase by 10% to 20% on average.

According to sources, Toshiba has begun negotiations to increase the price of its automotive power semiconductors.

According to multiple sources, overseas chip makers, including NXP (NXP), the world’s second-largest automotive chip supplier, and STMicroelectronics of Switzerland, also require customers to pay 10% to 20% more. A representative of NXP told Nikkei on Thursday that the company has adjusted its prices but could not comment further. A representative of STMicroelectronics declined to comment.

The chip manufacturer has not yet revealed which customers will be affected by higher prices, but Toyota's Denso and Continental are likely to be one of them. The latter is a supplier to Volkswagen and other automakers.

Subaru will further reduce production in February. A Subaru executive said: "No matter how high the price is, ensuring chip security is our top priority." He hinted that the automaker will accept price increases. A source at the German parts manufacturer Continental said it will take about six months to return to normal.

Renesas Electronics CEO Shibata Hidetoshi Shibata mentioned that it will be a challenge to solve the current supply crunch in the short term.

Ikuya Kawasaki, President of Infineon Japan, said that it takes time to increase production capacity. Kawasaki said: "It will take two to three years to manufacture a chip factory." "Not only is it a long-term commitment, but also understanding'when and how many products are needed' is essential for continued investment."

He said that Infineon not only produces its own chips, but also outsources some products to contract manufacturers. Because it provides products to global automotive suppliers, it is in much better condition than most other companies in the industry, which allows Infineon to make long-term demand estimates.

Kawasaki said that now that contract chip manufacturers are in trouble, "it is important to share long-term trends with them."

It is unusual for chip manufacturers to demand price increases, because as costs rise, such products become unprofitable. But Akira Minamikawa, the head of British research company Omdia, said that since the dot-com bubble burst, multiple chip manufacturers are now raising prices for multiple products for the first time.