NXP Semiconductors raising prices after product shortages, cost increases – letter

(Reuters) – Dutch automotive chip supplier NXP (NASDAQ:NXPI) Semiconductors has told customers that it must raise prices on all products because it is facing a “significant increase” in materials costs and a “severe shortage” of chips, according to a letter to its customers seen by Reuters.

“To address the unforeseen increase in costs from our suppliers, we reluctantly must raise pricing on all products,” the Nov. 26 letter to the chipmakers customers said. NXP confirmed the authenticity of the letter but declined to comment further.

Volkswagen (DE:VOWG_p) AG said Friday that a global chip supply shortage could lead to interruptions in automobile production in China.