The global shortage of chips remains, and the rising tide of chip prices has not eased, but set off another wave.
According to media reports, American chip giant ADI (Analog Devices, Yadno Semiconductor) faces the pressure of price increases from all aspects of the supply chain, especially the sharp increase in wafer manufacturing costs, so the company is determined to increase product prices to pass on costs.
Judging from the previous price increase letter, ADI plans to raise prices for some products of the company and its Maxim company again, and the price increase measures will be implemented from December 5, 2021, while Maxim products that have not been included in the "re-price increase" will continue to follow the 6% price increase previously communicated.
IC Sights data show that in 2019, ADI is the second largest analog chip manufacturer in the world, second only to Texas Instruments (TI). The price increase is the company's first price increase since the second half of the year, and the last time it was in early April. At that time, the company decided to raise the quotations for some old models, which will be implemented on May 16, an increase of about 25%, and the price increase is due to "rising costs in the supply chain such as raw materials and packaging."
ADI's analog chip counterparts announced a new round of price increases in early September-Texas Instruments plans to adjust the overall price, which will take effect on September 15, while on Semet will raise the price of some products, which will take effect in early October.
Industry insiders have previously pointed out that under the competitive price increases of global leaders, it is expected that domestic peer manufacturers will soon follow suit.
Since the beginning of this year, the rising price of analog chips has swept the world, which has greatly boosted the performance of A-share related companies. According to the industry classification of Shenwan, A shares have a total of 14 analog chip designers, of which more than 80% of Q3 single-quarter revenue and deduction non-net profit have recorded a substantial increase over the same period last year, of which Jingfeng Mingyuan buckle non-net profit has a year-on-year increase of nearly 25 times.
A number of companies also said in the report that one of the reasons for the sharp boost in performance is the increase in product prices.
The life cycle of analog chip is long, the iterative speed of product is slow, and it is widely used downstream. IC design depends more on the experience of senior engineers, but the requirement of wafer process is not high.
Galaxy Securities pointed out that the market share of analog chips in China has been increasing in recent years, but it is still at a low level, with a self-sufficiency rate of only 12% last year and a broad space for the local market. At present, the domestic analog chip market presents the market pattern of oligopoly competition, and the CR5 is only 35%. Analysts are optimistic that with the continuous technological breakthroughs of domestic manufacturers, they will quickly seize market share.
It is suggested that we should pay attention to the analog chip platform company Shengbang Co., Ltd., Silipu, Ai Wei Electronics, Force Core Micro, which has a strong strength in the field of power management, and LED driver Chip Design Company Fuman Electronics (which has been renamed "Fuman Micro"), Jingfeng Mingyuan and so on.
