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The semiconductor market is facing another headwind. According to reports from mainland China, global analog IC leader Texas Instruments (TI) informed customers that the imbalance between supply and demand will ease in the second half of the year, which may end the analog IC price increase party headed by power management chip (PMIC), and may even face price reduction pressures.
Analog IC market conditions were booming last year, with prices rising sharply for the first time in 17 years. Especially among general-purpose analog ICs, power management chips, which account for the largest proportion, are in severe short supply and have become the most popular item in the semiconductor market. Brands/ System manufacturers mentioned that among all ICs, the most lacking thing is power management chips. As a result, Silicon Power replaced Largan Guang and became the king of Taiwanese stocks. The profits of related Taiwanese manufacturers such as Maoda and Zhixin also reached historical peaks, and their stock prices synchronized. Flying to the sky.
However, this year, with the rapid opening of new production capacity and the freezing demand in mainland China, the global analog IC leader TI issued a warning, symbolizing that the analog IC price increase party will be over. Once even the most popular power management chip in the industry is unable to continue its prosperity. The situation revealed that the overall market situation is taking a sharp turn for the worse.
It is reported from the mainland channel that TI has informed customers that the imbalance between supply and demand will be alleviated in the second half of the year, which may end the price increase party for analog ICs led by power management chips, and may even face downward pressure. To this end, many local analog IC companies are responding urgently, which has also changed the previous trend of crazy price increases, and even begun to allow negotiation. News related to
has triggered discussions in many online forums and online media in mainland China. Some people in the industry admitted that "chips have passed the peak period of shortage, and I feel that the turning point of the analog IC market may come earlier than expected." Especially in the past, it was difficult to find a single product. The situation is no longer the same. The amount of chips supplied by original manufacturers has increased significantly. On the user side, fewer people are asking for prices. "It's hard to even sell samples."
An anonymous analog IC industry official said frankly that supply and demand are now roughly balanced, and customer demand has indeed declined. Because brand manufacturers are hesitant one after another, system manufacturers have followed suit and have stepped on the brakes because they are worried that inventories are too high.
Another Taiwanese manufacturer said that in June, some customers were unwilling to have too high inventory at the end of the quarter, so they were a little bit shy about buying. At the same time, in the inflation environment, it still depends on whether consumers are willing to buy products, and in the future, it will be observed whether the brand-side inventory is depleted quickly enough. In terms of quotation, when there was a shortage in the past, customers would of course give priority to products that were available and not care so much about price. But now if it is an existing old product line, customers will inevitably want to negotiate the price.
Even though the market noise continues, Chen Wei, chairman of Silicon Power, still shouted recently that the company's products continue to be in short supply and inventory is very low, and it is expected that this will be the case throughout the year.
Research Institute IC Insights predicts that the overall analog IC output value will grow by 12% annually this year, which is significantly less than the largest increase in history of 30% last year. It also predicts that the average price of analog ICs will only increase by 1% annually this year, which is not as good as the 6% increase last year.
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