Analog chip prices plummeted by 80%? Texas Instruments responds

Entering June 2022, although the industry is still facing the problem of "lack of cores" in some fields, the price of chips that have skyrocketed before has fallen back, and the imbalance between supply and demand in the analog chip market may improve.

Prices plummeted by 80%? Texas Instruments responds

In June, there was news that the price of analog chips had plummeted, and the prices of some products of Texas Instruments, a leading company in analog chips, dropped by 80% recently.

In this regard, Texas Instruments recently told China Business News that the company's price has not changed as reported by the outside world as "down 80%". The company further stated that sometimes some traders who are not authorized by Texas Instruments will also obtain products from the market and conduct them. For resale, the price information mentioned in the above news may also come from these sources.

According to media reports, in the spot market, the price of Texas Instruments power management chips has indeed fluctuated, and the price of a certain chip has dropped from the highest point of 45 yuan to about 3 yuan.

The industry has already anticipated the decline in the price of analog chips. On the one hand, the price of analog chips has risen too high in the early stage, and sooner or later, it will return to a reasonable price in the market; on the other hand, the increasing chip production capacity will also help the price of analog chips to fall.

Taking the power management chip in the analog chip as an example, the current 8-inch capacity of the fab is relatively tight. Previously, the 8-inch power management chip products were gradually turned to 12 inches, and the shortage of such chips began to ease.

At the same time, IDM manufacturers continue to expand production to improve cost and supply chain advantages, which will continue to help the balanced development of analog chip supply and demand in the future.

On May 19 this year, Texas Instruments announced that it has broken ground on its new 12-inch semiconductor wafer fabrication facility in Sherman, Texas. The project invests about $30 billion and plans to build four factories to meet long-term Market demand. These new factories will manufacture tens of millions of analog and embedded processing chips per day for a wide range of electronic products in the global market. Among them, the first plant is expected to start production in 2025.