This is a memo published by our supplier regarding the purchase price adjustment:
Last year, the world economy was hit hard caused by the trade-conflict between the US and
China, along with the spread of COVID-19. The Corona Virus lead major cities to lockdown
around the globe. We took major steps to tackle this downturn in the economy by
implementing structural reforms such as reduction of fixed costs, suspension of unprofitable
operations, and expansion of overseas production and productivity reforms. The supply-demand balance changed drastically since latter half of last year.
The market involving 5G, cloud-servers and new automotive technologies revitalized, and we
find ourselves forced to limit orders for some product categories and extend lead times on
others.
The cost of major raw materials for our products, such as aluminum, copper, crude oil, iron
and various chemicals continues to soar. The restriction on resin-material supply caused by
the recent North American cold wave, and the exploding demand of electronics in China
extended the turmoil. Moreover, the shortage of freight containers that originated in the port
of Los Angeles in US has expanded to a global scale, and the transportation cost is rapidly
increasing.
Although, we have made every effort through in-house cost reduction measures; in this
atypical business environment, it is extremely difficult for us to absorb these increases by
internal efforts only. Hence, it is with regret, that we are informing you that we must ask for
your support as per below to continue to meet your service demands during this unprecedented
market situation. We thank you in advance for your understanding and cooperation. Our
local sales representatives will contact you with details.
- Price Adjustment: (Effective Date: April 1, 2021 delivery basis)
- Suspension of using legacy products for new designs while allowing last time buy
purchase for products going EOL.
