TI Raises Prices 10%-30% on Over 60,000 Chips
According to reports, Texas Instruments (TI) has announced its largest price hike ever to Chinese customers, raising prices on over 60,000 products by 10% to more than 30%, catching many off guard.
Though TI officially set the new prices to take effect on August 15, some Chinese clients report seeing the increased pricing from August 4. Unlike the targeted increase on 3,300 products back in June, this round covers nearly every category—from industrial control and automotive electronics to consumer and telecom chips.
Reports from China reveal that industrial components like digital isolators and isolation drivers have surged over 25%, while some older low-dropout regulators (LDOs) jumped by as much as 30%. Analysts see this as a structural shift in TI's pricing strategy, where raising prices on traditional chips encourages customers to adopt newer, higher-margin products. For example, a DC-DC converter introduced in 2018 has seen its price climb 22%.
TI's pricing changes highlight three clear trends.
First, industrial control chips, which make up over 40% of TI's portfolio, have faced significant hikes—like a 16-bit ADC chip used in factory automation rising from $3.20 to $4.10, a 28% increase.
Second, TI's latest earnings show mid-single-digit growth in automotive, mainly thanks to China. Automotive-grade power management ICs (PMICs) have jumped 18% to 25%, while battery management system (BMS) isolators for electric vehicles rose 22%.
Third, consumer electronics and telecom chips also felt the squeeze, with fast charging ICs and RF front-end chips up 5% to 15%.
Industry insiders point to rising U.S. manufacturing costs and geopolitical tensions as key drivers. Due to past discounting policies, TI's profit margins in China have long lagged behind its global average. The new pricing signals a shift toward prioritizing profitability over market share.
Meanwhile, the China Semiconductor Industry Association (CSIA) has introduced rules requiring import tariffs on chips to be based on wafer origin. This adds import pressure on U.S. chipmakers like TI, Microchip, and ON Semiconductor, making price increases nearly unavoidable.
Analysts warn this could trigger a domino effect, with companies like ADI potentially following suit, and downstream buyers accelerating inventory clearance and adjusting supply chains.
The surge in imported chip prices opens doors for Chinese analog chip makers. Local companies such as SGMICRO, 3PEAK, and Chipsea Technologies are moving quickly to offer more cost-effective industrial and automotive alternatives, aiming to seize market share in this shifting landscape.
