The price of power management IC continues to rise. Some products have increased by a hundredfold. The order delivery period has been extended to 50 weeks.

The wave of lack of cores sweeping the world comes and goes like shredding. The power management chip is the hardest hit area of this round of shortage and price increase, and the delivery delay is the most serious.

At present, the main participants in the global power management market are still Texas Instruments, Qualcomm, Yadno, PI, MPS and other European and American enterprises. Some products of Texas Instruments, the leading manufacturer of power management IC, have increased their prices by tens or hundreds of times, and terminal manufacturers are scrambling for goods, according to Ji WeChat. The company also said at a recent performance presentation that more than 80% of its products have a stable delivery time. In other words, the delivery time of the other 20% of the products is uncertain.

Another industry insiders said that the order delivery period of power management IC has been extended to more than 50 weeks, there is no trend of mitigation at all.

According to data from research firm Susquehanna Financial Group (SIG) in May, the overall chip lead time (the time gap between ordering semiconductors and delivery) was 18 weeks, the longest delivery time since SIG began tracking in 2017, with power management IC being the most delayed, with delivery time as long as 25.6 weeks, while the supply of chips such as (MCU) and Analog IC, which are also brothers, are improving.

It is worth noting that the above-mentioned industry insiders said that the uncertainty in the supply of Texas Instruments made the big customers who were supposed to be priority suppliers feel anxious, which led to the cultivation of secondary supply in the industry, and the situation of increasing orders to other manufacturers was more obvious. It is understood that as early as the end of 2020, some downstream customers have turned to MPS and other domestic original factories to place orders.

In the long run, with the new replenishment cycle brought about by the volume of electric vehicles, 5G replacement, the outbreak of consumer electronics and the acceleration of the Internet of things, the demand for power management chips has skyrocketed. The global market for power management chips is about $25.1 billion in 2018 and is expected to expand to about $55 billion in 2026, according to founder Securities. At present, the demand for the security of the domestic supply chain is strong, and in the downstream application field, the market share of domestic manufacturers' products is gradually increasing, and the opportunity for domestic manufacturers to cut into the supply chain is enlarged.

In the short term, the influx of a large number of orders has raised the overall price center of the power management IC, and many related manufacturers have disclosed bright performance or performance forecasts. According to incomplete statistics, domestic power management chip manufacturers, including Si Lijie, Shilan Wei, Xinpenwei, Dongke Semiconductor, Huimang Micro, Xilong Semiconductor, Yingji Core, Nanjing Weimeng, Biyi Micro, Fuman Electronics, and Shanghai Beiling, have issued one or more price increase letters.