SHANGHAI, Oct 11 (SMM) - The continued tight production capacity has prompted chip makers to raise the prices of chips again in Q4 with a range of 10 - 20%. The main reasons include semiconductor supply chain shortages, no signs of recovery in the foreseeable future, and the increasing costs of some key supporting sectors (foundry, raw materials, logistics, etc.).
The supply of PMICs for mobile phones is still tight, and domestic manufacturers are expected to benefit from the current situation. According to DIGITIMES Research estimate, the global shipments of PMICs for smartphones will reach 9.41 billion units in 2021, up 26.7% year-on-year, and are expected to maintain strong growth in 2022-2023, with growth rates of 29.9% and 26.0% respectively.
On the demand side, the penetration rate of 5G mobile phones continue to rise, while the number of RF front-end chips and modules expands, and the demand for individual PMICs grows significantly. On the supply side, PMICs for smartphones mostly use 0.11/0.18 micron BCD process, with production capacity concentrated in 8-inch. 8-inch BCD production capacity is currently in short supply. Furthermore, it is difficult to switch from 8-inch to 12-inch production capacity for a short period of time, so the production capacity will continue to be tight. On the other hand, the PMICs bundled with Qualcomm and MediaTek are at risk of running out of stock, so the proportion of bundled sales is being reduced and some product types are being released to provide alternative opportunities for international makers such as ST and Maxis, as well as domestic manufacturers such as Shengbang, Aiwei Electronics and Nanxin.
Though the current demand for semiconductors has demonstrated certain structural differentiation, the overall supply remains tight amid a booming market. The existing demand is solid, and 5G, new energy, photovoltaic, "new infrastructure" and other innovative applications have created massive new demand. At the same time, localisation is being vigorously promoted, and foundries and IDMs are continuing to expand production to meet increasing demand, thus benefiting the whole local semiconductor industry chain, with strong, long-term growth momentum.
