As early as the second half of 2020, the power management chip market was out of stock. With the market demand for 5G communications, data centers, smartphones, and PC driving, the original factory capacity was limited, order delivery was delayed again and again, some products were extended to more than 50 weeks, the market kept hoarding and speculation, and the prices of popular products increased to dozens or even hundreds of times.
The price of TI popular materials has increased hundreds of times, and the delivery time has been extended to more than 50 weeks.
It is well known in the industry that at present, the main participants in the global power management market are still mainly European and American companies such as TI, PI, MPS, etc., and the same is true in China, with more than 80% of the market share occupied by imported chips.
Like CPU, GPU, MCU, MOSFET, IGBT, display driver chips and other chips, the shortage of power management chips starts from the market gap of imported chips.
Industry insiders said that TI's power management chip is one of the most serious out-of-stock products, including TPS series, TLV series, BQ series, UCC series, including chip products market gap is very large.
It is understood that power management chips exist in almost all electronic products and equipment, and the above materials belong to common materials, the price is relatively low, and the application is also very extensive, which makes the shortage more serious.
Industry insiders further pointed out that the shortage of TI's eight-inch wafer capacity is very serious, and in order to maintain profits, only limited wafer capacity can be used to make products with a higher unit price, which leads to a serious shortage of production capacity of products with a unit price of less than US $1, especially in the market, especially the TPS series, where the overall delivery time has been lengthened repeatedly, market prices remain high, and some products are priced several hundred times higher, as well as terminal manufacturers scrambling for goods.
TI also said at the performance presentation that more than 80 per cent of the company's products have a stable delivery time. In other words, the delivery time of the other 20% of the products is uncertain.
Another insider in the industry pointed out that there is nothing terminal manufacturers can do about it. Small factories can not get spot goods at the original factory and agent end, and medium and large factories can get some spot goods, but inventory consumption is also very serious, so they can only find another way out. Order delivery time, from 30 weeks to 40 weeks, now lengthened to more than 50 weeks, there is no trend of alleviation at all. If a material is out of stock, the whole product will not be able to produce and ship, and the cost is too high.
It is worth noting that due to the weakness of some downstream market demand, the price increase of upstream materials has begun to restrain customer demand.
Ji Wei.com learned from the industry that the overall rise in chip prices has led to higher costs for factories to take goods than ever before, and some factories have begun to consider only emergency online materials.
RafaelLizardi, Deyi's chief financial officer, said a few days ago that the company really doesn't know how long the global chip shortage will last. Indeed, the semiconductor industry is changing very fast, and the future market situation is full of uncertainty.
Domestic substitution accelerates, power management chip enterprises usher in a golden period of development
Since the trade friction between China and the United States, downstream terminal manufacturers pay particular attention to the security and controllability of the supply chain, domestic substitution has also become an industry trend, and the long-term shortage of TI chips has accelerated the trend of domestic substitution.
It is understood that as early as the end of 2020, some downstream customers have turned to MPS and other domestic original manufacturers such as Silliet, Saint Bangwei, Silan Wei, Threp, and Jet to place orders, but other manufacturers are simply unable to digest the market gap.
Industry insiders said that although the overall business scale of MPS is not as good as that of TI, the performance of some products is among the highest in the world, so the shortage and price increase is also very serious.
In fact, at present, the whole industry is in a state of shortage of wafer and closed test resources, which leads to the increase in out-of-stock prices throughout the power management chip market.
According to incomplete statistics, domestic power management chip manufacturers including Si Lijie, Shilan Wei, Xinpenwei, Dongke Semiconductor, Huimang Micro, Xilong Semiconductor, Yingjie Core, Nanjing Weimeng, Biyi Micro, Fuman Electronics and Shanghai Beiling have issued one or more price increase letters.
Benefiting from the sustained strong market demand and the trend of transfer orders, domestic and foreign power management chip enterprises have also ushered in a golden period of development, performance and market share are gradually increasing.
A staff member of a domestic power management chip company said that at present, the company's performance is mainly limited by the upstream supply chain, and the company originally planned to double its performance this year compared with the same period last year, but this goal was achieved in the first half of the year, and the performance in the second half depends on the arrival of the company.
Today, the uncertainty of TI supply makes the big customers who originally belong to priority supply feel anxious, which leads to the cultivation of second supply in the industry and the increase of orders to other manufacturers is more obvious.
Some people in the industry are worried that due to the transfer orders caused by the shortage of production capacity, the stickiness of future orders is not strong, and the order may turn back again in the past period of tight production capacity.
In this regard, the domestic power management chip industry said that customers who have basically used our products will not change orders again, when the price of imported chips falls, we will also reduce the price of Synchronize, the cost-effective advantage still exists.
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