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Texas Instruments Cuts Local Analog IC Prices

Published: 6.7.2023

Texas Instruments (TI) has cut local analog IC prices in China by 20-30%, according to reports. The price cut is seen as impacting more general-purpose analog ICs such as power management ICs (PMICs) and signal chain ICs, and to a lesser extent custom and application-specific chips.

The reports add that China's domestic analog suppliers are already feeling the brunt of the price cut, specifically suppliers like Shengbang, Nanxin Technology, Jingfeng Mingyuan, and Awinic. A local executive called the TI price cut "a reach for market share gain from Chinese suppliers."

The reports add that the price reduction could have a "positive" impact on TI's 2Q results, with revenue rebounding quarter over quarter. TI has been facing increasing competition from Chinese analog suppliers in recent years, and the price cut is seen as a way to defend its market share.

The price cut is also seen as a sign of the growing competitive landscape in the global analog IC market. Chinese analog suppliers have been investing heavily in research and development, and they are now able to offer competitive products at lower prices. This is putting pressure on global analog IC giants like TI, which have traditionally dominated the market.

The price cut is likely to have a ripple effect across the global analog IC market. Other global analog IC suppliers are likely to follow suit and reduce their prices, in order to compete with TI and Chinese suppliers. This could lead to a period of price deflation in the global analog IC market.

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