Manchester, New Hampshire, USA – March 22, 2026 – Allegro MicroSystems, Inc. (Nasdaq: ALGM), a global leader in high-performance power and sensing semiconductor solutions for motion control and energy-efficient systems, has officially notified customers of a global price increase across its entire product portfolio, effective April 27, 2026. The adjustment will be no less than 10% for all new orders and unshipped existing orders as of the effective date.

Rationale for the Price Adjustment

In an official customer communication, Allegro cited persistent and escalating industry-wide pressures that have necessitated this move, after absorbing cost increases internally for over two years:

• Escalating Raw Material Costs: Significant price hikes and quota fees imposed by suppliers for critical materials, including silicon wafers, rare earth metals, and precious metals used in sensor and power IC manufacturing.
• Supply Chain and Capacity Constraints: Tight global semiconductor manufacturing capacity, particularly for 8-inch wafers, leading to higher wafer fabrication and OSAT (Outsourced Semiconductor Assembly and Test) costs.
• Rising Operational Expenses: Sustained increases in global energy costs for manufacturing facilities, coupled with elevated logistics and transportation expenses.
• Strong Market Demand: Robust and growing demand across key end markets, including automotive electrification, industrial automation, renewable energy infrastructure, and AI data center applications, requiring continued investment in production capacity and innovation.

The company emphasized that this price adjustment is a necessary step to maintain supply chain resilience, fund future capacity expansions, and uphold its commitment to delivering high-quality, reliable products and technical support. “By setting the increase at a level below the industry average, we aim to share the burden with our valued partners while ensuring the long-term sustainability of our operations and the continuity of supply,” the company stated.

Scope and Implementation Details

• Effective Date: April 27, 2026.
• Affected Products: All product lines, including Hall-effect sensors, current sensors, position and speed sensors, motor drivers, and power management ICs.
• Application: Applies to all new purchase orders received on or after the effective date, as well as all existing orders that remain unshipped as of April 27, 2026.
• Communication: Detailed pricing information is being communicated directly to customers and authorized global distribution partners.

Market Impact and Industry Context

As a key supplier to over 10,000 customers worldwide, including more than 50 automotive OEMs, Allegro’s price adjustment is expected to have a notable impact across multiple industries. Its products are integral to automotive powertrains and safety systems, industrial robotics, renewable energy inverters, and data center power management.

This announcement follows a series of similar price adjustments by major semiconductor manufacturers in early 2026, including STMicroelectronics, Infineon, and Analog Devices, signaling a broader trend of cost normalization in the global semiconductor market.

About Allegro MicroSystems

Allegro MicroSystems (Nasdaq: ALGM) is a global leader in designing, developing, manufacturing, and marketing high-performance power and sensing integrated circuits. The company’s innovative solutions enable precise motion control and energy efficiency in automotive, industrial, consumer, and renewable energy applications. Headquartered in Manchester, New Hampshire, Allegro employs over 3,000 people globally and ships more than 1 billion units annually.

For more information, visit www.allegromicro.com.

Disclaimer

This article is based on official customer notifications and industry reports as of March 27, 2026. For the most accurate and up-to-date pricing and availability information, customers are advised to contact Allegro MicroSystems directly or their authorized distributors.