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Renesas, NXP and other chipmakers raise prices on surging auto demand

Rare move comes with industry squeezed by rising costs and limited capacity

Automakers, already cutting back on production due to a lack of chips, will have to pay more for the semiconductors that control voltage and the microcomputers that control the driving of cars. (Source photos by AP and Reuters) 

TOKYO -- Japan's Renesas Electronics, the Netherlands' NXP Semiconductors and other chipmakers are raising prices on semiconductors that go into cars and telecom equipment as they attempt to maneuver out of a squeeze created by soaring demand and limited foundry capacity.

Some observers expect chip shortages for another six months, a drought that is likely to affect the earnings of automakers and other companies.

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