With the current easing of chip supply issues, the demand in traditional consumer sectors such as mobile phones and PCs might gradually recover in 2023. Meanwhile, emerging applications like new energy electric vehicles and artificial intelligence IoT are showing limitless market potential. This month’s market report focuses on analyzing the current demand for chips from popular industries and their original manufacturers.
01 Texas Instruments (TI)
TI, a leading manufacturer of analog chips and power management chips with the largest market share globally, has played a crucial role during the ongoing two-year “chip shortage.” This includes some historically skyrocketing models that have now returned to normal prices, as well as some automotive chips that remain in high demand.
Power Management Chips:
- Examples from TI’s TPS series include LED driver chips, power switch chips, and low-dropout regulators. Currently, some models are gradually returning to 2020 standard prices. Major customers with bargaining power at the original manufacturer are more likely to secure supplies, hence less demand for spot purchases. Smaller downstream customers, however, often cannot meet price expectations. (Examples: TPS7A1633QDGNRQ1, TPS1H100AQPWPRQ1 prices fluctuate significantly, with spot prices often 30-40 times higher than regular order prices, leading to cautious buying.)
Automotive Chips:
- High demand for chips used in automotive ADAS, such as serializer/deserializer chips, keeps prices high. (Example: DS90UB947TRGCRQ1 prices have been rising continuously since 2021 due to high value and limited supply.)
With the potential market share of new energy vehicles still expanding and the irreplaceability of TI’s automotive-grade chips, demand is expected to remain strong.
02 Analog Devices (ADI)
While ADI’s sales were less hot in the third and fourth quarters compared to the first half of the year, their 2022 Q4 financial report shows that their main revenue sources remain industrial and automotive chips, accounting for 51% and 21% respectively. This indicates that the sluggish consumer demand did not significantly affect ADI.
Power Management Chips:
- Benefiting from the electrification trend in vehicles, ADI’s power management chips performed strongly in the second quarter. Models such as ADUMx, ADPx, and LTMx are gradually returning to normal prices after previous high premiums due to strong demand.
High-End Analog Chips:
- Some high-end analog chips from ADI still face long lead times, with some models exceeding 80 weeks. (Example: AD9 chips are highly sought after, with frequent price inquiries from customers.)
03 NXP
NXP’s regular material supply started recovering slowly in November, with shortages still concentrated in automotive-grade chips. Since Q1 2021, NXP has focused production capacity on automotive chips but still cannot meet the burgeoning demand. Models such as i.MX and S9 series remain in short supply, justifying the high premiums in the spot market.
Automotive MCUs:
- NXP’s 32-bit MCUs meet high safety design standards in automotive applications, with lead times typically above 52 weeks. (Example: S912ZVL64F0MLFR prices have surged 6-8 times in a year, far exceeding normal futures prices. S912ZVCA19F0MLF is also in high demand, with full-package spot sources hard to find.)
Varying Demand for Automotive MCUs:
- Some automotive MCU models have seen prices drop due to eased supply pressures and reduced urgency from downstream customers. However, reports suggesting the end of the automotive MCU shortage are likely premature.
04 Microchip (MICROCHIP)
Microchip’s popular products in November continued to be gateway chips and 32-bit MCUs. Traditional 8-bit and 16-bit MCUs for consumer and low-end industrial applications are relatively well-stocked with stable prices.
KSZ9031 Series:
- Demand remains strong, particularly for KSZ9031RNXIA, which is highly sought after due to limited supply and exaggerated prices.
Automotive-Grade MCUs:
- Demand is increasing, with wide application and many models available for inquiry. (Example: PIC16F15356T-E/SSVAO, PIC16F15355T-E/SSVAO have lead times starting at 52 weeks.)
05 Xilinx
Xilinx announced a price increase in November 2022, with details on lead time predictions for various series.
7 Series:
- Prices are fluctuating, with some models like 7A experiencing significant reversals. 28nm 7 series lead times are expected to normalize by Q3 2023. (Example: 7S, 7A, 7K, 7V series are projected to stabilize by Q2 2023.)
6S Series:
- Prices are set to increase by 25% after January 2023, with some models still in high demand and commanding high prices.
Discontinued Products:
- Certain PQ(G)208 package models are entering discontinuation plans without achieving the expected price increase. (Examples: FPGA XC3S, CPLD XC2C, CPLD XC95, CPLD XCR.)
16nm and 20nm Products:
- 16nm AU, KU, VU series lead times are expected to normalize by Q2 2023. 20nm KU, VU series are expected to stabilize by Q3 2023.
06 Infineon
As a top player in automotive power semiconductors, Infineon benefits from the growing market for new energy vehicles. Products like MOSFETs and IGBTs have high market penetration, and high-end automotive MCUs (SAK series) have seen significant price increases due to demand in applications such as body, chassis, safety, and powertrain.
- SAK Series Automotive MCUs:
- Prices have been extraordinarily high due to factors like demand, pandemic, and speculation. While some prices have dropped due to new shipments, they remain above normal levels.
Customers are advised to secure orders at current lower prices to avoid future price hikes as market demand recovers.
In this era of information explosion, being a part of the chip supply chain means we must remain resilient to welcome the day of freedom.