Global power management chip prices rose 10% in 2021, and supply remained tight in the first half of 2022

According to TrendForce, as power management chips (PMICs) are in short supply in the semiconductor shortage, the price increase trend has continued to date. The average selling price (ASP) is estimated to increase by nearly 10% annually in 2021, the highest in nearly six years.

From the perspective of the global supply chain, the current power management chip production capacity is mainly controlled by IDM manufacturers, including TI, Infineon, ADI, STMicroelectronics, NXP, ON Semiconductor, Renesas, Microchip, and ROHM (Maxim has been acquired by ADI, and Dialog has been acquired by Renesas); IC design companies such as Qualcomm and MediaTek (MTK) have also obtained part of their production capacity from foundry companies, among which TI has a leading position. The above-mentioned companies have a combined market share of more than 80%.

From the perspective of product structure, with the continuous increase in demand for consumer electronics, communications, industrial control, and automotive terminals, coupled with product changes driven by industrial transformation, the global market's use of power management chips has increased significantly. Consumer electronics products are the largest application area for power management chips. Although there has been noise in the recent demand for laptops, Chromebooks, smartphones, and TVs, the momentum of pulling goods for a few simple items such as linear regulators (LDO) has indeed slowed down. However, due to the structural increase in demand for power management chips for electronic products, some models are still in short supply. Among them, Qualcomm and MTK are limited by the shortage of mature process capacity of wafer foundry, and their own power management chips are also in short supply.

In addition, as the auto market recovers, electric vehicles, automotive electronics, and ADAS are growing rapidly, and the technical requirements for power control, management, and charging have increased. In addition, there are many inspection items for automotive chips, and their consistency and zero failure rate must be guaranteed. Currently, IDM companies' automotive chip orders are generally scheduled until the end of 2022. Due to factors such as full production capacity and shortage of raw materials, power management chip suppliers currently set a longer delivery period, with the delivery period for consumer electronics chips extended to 12 to 26 weeks; the delivery period for automotive chips is as long as 40 to 52 weeks, and some exclusive models have even stopped accepting orders.

TrendForce believes that the demand for power management chips will continue to be strong in the fourth quarter, and overall production capacity will still be in short supply. With IDM companies leading the increase, the price of power management chips will remain high. Although there are still variables in the epidemic, and it is difficult to significantly expand the production capacity of 8-inch wafers, in the second half of 2022, TI's new plant RFAB2 will be completed and mass-produced, and wafer foundries plan to promote some PMICs produced by 8-inch wafers to 12 inches. There is a high possibility that the insufficient production capacity of power management chips will be moderately alleviated, but it is still necessary to pay attention to future changes in market supply and demand.