Xi Diwei's response to the price increase of products: mature process cost pressure is high, the industry has not yet formed a wave of price increases.

Recently, the listed chip company Xidi Micro announced that some products will be raised in price starting from March 1st. Regarding the details of this price increase, Xidi Micro recently explained to Securities Times reporters that this round of price adjustments is mainly driven by cost pressures brought about by structural supply and demand imbalances in the mature process field. Currently, there is no industry-wide trend of price increases, but it is not ruled out that more domestic manufacturers will follow suit in their core product lines in the future. "This round of price increases covers consumer electronics products and automotive electronics products, and the price adjustments mainly target parts of the product line that have been under obvious pressure due to excessive competition in the past." The head of Xidi Micro explained to the reporter, the company will implement a differentiated pricing strategy based on the technical barriers, customer concentration, market competition landscape, and cost transmission capabilities of each product line; while considering the importance of customers and business sustainability, the price increase will be controlled within a reasonable range to balance cost pressures and market acceptance, maintain long-term cooperative relationships and profitability.