What is the company's net income in Q1 2022
akes, and we'll update folks as we walk through the year.
Tom O'Malley -- Barclays -- Analyst
That's helpful. And then, just to check in, you guys have talked about the supply chain, and you're benefiting at the expense of alternatives. Can you talk about the traditional of course crystals suppliers? You've seen some struggle there. Are you seeing any effort to ramp capacity there? Is there any tangible effort there that's having success? Can you just talk about where you're positioned versus that traditional competition and if you think that there's any capacity coming online anytime soon?
Rajesh Vashist -- Chief Executive Officer
Yeah, I do think that there -- I anticipate I don't have any data around it, but I anticipate that there'll be more capacity coming on. I particularly think that in general, with the large expansion of all component capacity in China, in Mainland China, I think they will also be expanding. But to me, I don't know if I think of that as competition because we -- our products are significantly differentiated from those products to really matter. As an example, the XCalibur product the active resonator product is a very, very distinct product.
In fact, its own category, as I mentioned. So I don't know how much that impacts us directly, it impacts us in the general way that customers have come to us because of shortages, maybe that gets a little bit slower. On the other hand, I think because of the products that I mentioned that we are coming out with, the pace of new customer acquisition gets higher. So net-net, I think we are in a good place.
Tom O'Malley -- Barclays -- Analyst
All right. Thanks again, and congrats, guys.
Rajesh Vashist -- Chief Executive Officer
Great. Thanks.
Operator
Our next question comes from John Pitzer with Credit Suisse.
John Pitzer -- Credit Suisse -- Analyst
Yeah, good afternoon, guys. Thanks. Let me ask the question. Art, I just want to go back to your comments about increasing cost hitting gross margins starting in the June quarter.
I mean, TSMC is raising pricing kind of across the board. We're hearing that with many of their customers. But the vast majority of them are just being able to pass those costs along. I'm kind of curious, given that you've exhibited perhaps stronger pricing power than a lot of other chip players in calendar year '21.
Why all of a sudden, this is an issue this year and why you just can't pass those cost increases along?
Art Chadwick -- Chief Financial Officer
Yeah, so I think, there's a couple of pieces to the answer there. First of all, these wafer cost price increases began at the beginning of the year. And so, we did not have to worry about that last year. I can't speak to 2023 because we don't know what will happen there.
But in 2022, wafer prices are going up, and they went up at the beginning of the year. You don't see in our P&L in Q1 because essentially, the finished goods that we are selling in Q1 is coming from wafer as we bought in Q4. So that's why it doesn't impact Q1, but it starts impacting in Q2. And that's a real cost increase, it's solid, it's real.
So your question is, why can't we increase pricing? We have increased some pricing. As I mentioned, we can increase pricing even more, but there's that trade-off between increasing pricing to our customers and growth, and we're trying to find the right balance there. And the 2- to 3-point decrease that incorporates some increased pricing. If you look at our wafer cost and other manufacturing costs going up 20-plus percent, that's more than just 2 or 3 points.
So the 2 or 3 points is kind of net of price increases that we're anticipating. And that all customers will accept price increases. If you just look at some of our large customers, you can imagine how they would say, we are really not interested in that. So I don't know if that helps answer that, but I tried to add a little flavor to it.
Rajesh Vashist -- Chief Executive Officer
Yeah. And also, I'll add to that, that you said all of a sudden, I don't think this is all of a sudden, we've been saying this all through that t
akes, and we'll update folks as we walk through the year.
Tom O'Malley -- Barclays -- Analyst
That's helpful. And then, just to check in, you guys have talked about the supply chain, and you're benefiting at the expense of alternatives. Can you talk about the traditional of course crystals suppliers? You've seen some struggle there. Are you seeing any effort to ramp capacity there? Is there any tangible effort there that's having success? Can you just talk about where you're positioned versus that traditional competition and if you think that there's any capacity coming online anytime soon?
Rajesh Vashist -- Chief Executive Officer
Yeah, I do think that there -- I anticipate I don't have any data around it, but I anticipate that there'll be more capacity coming on. I particularly think that in general, with the large expansion of all component capacity in China, in Mainland China, I think they will also be expanding. But to me, I don't know if I think of that as competition because we -- our products are significantly differentiated from those products to really matter. As an example, the XCalibur product the active resonator product is a very, very distinct product.
In fact, its own category, as I mentioned. So I don't know how much that impacts us directly, it impacts us in the general way that customers have come to us because of shortages, maybe that gets a little bit slower. On the other hand, I think because of the products that I mentioned that we are coming out with, the pace of new customer acquisition gets higher. So net-net, I think we are in a good place.
Tom O'Malley -- Barclays -- Analyst
All right. Thanks again, and congrats, guys.
Rajesh Vashist -- Chief Executive Officer
Great. Thanks.
Operator
Our next question comes from John Pitzer with Credit Suisse.
John Pitzer -- Credit Suisse -- Analyst
Yeah, good afternoon, guys. Thanks. Let me ask the question. Art, I just want to go back to your comments about increasing cost hitting gross margins starting in the June quarter.
I mean, TSMC is raising pricing kind of across the board. We're hearing that with many of their customers. But the vast majority of them are just being able to pass those costs along. I'm kind of curious, given that you've exhibited perhaps stronger pricing power than a lot of other chip players in calendar year '21.
 Why all of a sudden, this is an issue this year and why you just can't pass those cost increases along?
Art Chadwick -- Chief Financial Officer
Yeah, so I think, there's a couple of pieces to the answer there. First of all, these wafer cost price increases began at the beginning of the year. And so, we did not have to worry about that last year. I can't speak to 2023 because we don't know what will happen there.
But in 2022, wafer prices are going up, and they went up at the beginning of the year. You don't see in our P&L in Q1 because essentially, the finished goods that we are selling in Q1 is coming from wafer as we bought in Q4. So that's why it doesn't impact Q1, but it starts impacting in Q2. And that's a real cost increase, it's solid, it's real.
So your question is, why can't we increase pricing? We have increased some pricing. As I mentioned, we can increase pricing even more, but there's that trade-off between increasing pricing to our customers and growth, and we're trying to find the right balance there. And the 2- to 3-point decrease that incorporates some increased pricing. If you look at our wafer cost and other manufacturing costs going up 20-plus percent, that's more than just 2 or 3 points.
So the 2 or 3 points is kind of net of price increases that we're anticipating. And that all customers will accept price increases. If you just look at some of our large customers, you can imagine how they would say, we are really not interested in that. So I don't know if that helps answer that, but I tried to add a little flavor to it.
Rajesh Vashist -- Chief Executive Officer
Yeah. And also, I'll add to that, that you said all of a sudden, I don't think this is all of a sudden, we've been saying this all through that t