Generalplus to raise prices 10-20% on all products amid rising costs

Taiwanese microcontroller (MCU) manufacturer Generalplus (盛群) announced it will implement a 10-20% price increase across its entire product range, marking the first such adjustment since the COVID-19 pandemic. The decision comes as the company faces escalating costs in wafer fabrication and packaging, coupled with a surge in demand, particularly from the artificial intelligence sector.

During a press conference on July 30, 2026, Generalplus spokesperson Pan Chien-chou (潘建州) explained that the tight capacity in mature manufacturing processes, exacerbated by AI demand, has created a ripple effect. This has led to increased costs for wafer foundries and packaging services. While Generalplus absorbed some of these costs in the first half of the year, the company is now communicating with clients about the upcoming price adjustments.

Pan noted that the company has secured significant capacity support from UMC (聯電), benefiting from a shift in wafer foundries prioritizing higher-priced MCUs over lower-cost domestic Chinese alternatives. Furthermore, customers are increasingly placing longer-term orders to secure future supply, extending the company's order visibility to approximately six months. This improved order book suggests that the second half of the year is expected to outperform the first half.

The price hike is strategically timed, following previous adjustments in March for low-margin projects. The recent increases in back-end foundry prices and anticipated further hikes in packaging costs in the third quarter have made the broader price adjustment necessary. Generalplus anticipates the full effect of these price increases will be realized into next year.