If you raise your prices too much, people will switch to competitors. This means that nobody is buying your product, so you'll never get to recoup the engineering expenses. Even worse, you'll become known as a manufacturer with unreliable pricing, making your chips very unattractive for new designs.
Having a steady and well-known demand might be a lot more valuable than the short-term profit you can squeeze out of the current shortage.
If you raise your prices too much, people will switch to competitors. This means that nobody is buying your product, so you'll never get to recoup the engineering expenses. Even worse, you'll become known as a manufacturer with unreliable pricing, making your chips very unattractive for new designs.
Having a steady and well-known demand might be a lot more valuable than the short-term profit you can squeeze out of the current shortage.