Amid supply shortages, power management IC prices jump 10% in 1H22

Article by: TrendForce

Power management IC ASPs for the first half of 2022 are expected to increase nearly 10%, reaching a six-year high.

Due to material shortages caused by an insufficient supply of semiconductors, to date, prices for power management integrated circuits (PMICs) remain on an upward trend, according to TrendForce. The average selling price (ASP) for the first half of 2022 (1H22) is expected to increase by almost 10%, reaching a six-year high.

In terms of global supply chain, in addition to the production capacity of major IDM manufacturers, including Texas Instruments Inc. (TI), Infineon Technologies, Analog Devices Inc., STMicroelectronics, NXP Semiconductors, onsemi, Renesas Electronics Corp ., Microchip Technology Inc. ., ROHM (Maxim was acquired by ADI and Dialog by Renesas), IC design companies such as Qualcomm and MediaTek (MTK) have obtained some level of production capacity from foundries. Of these, TI holds a leading position and the aforementioned companies have a combined market share of over 80%.

In terms of product structure, the incessant demand from consumer electronics, telecommunications, industrial control systems and automotive end-users, as well as product innovation driven by industrial transformation, will drive a dramatic increase in global market demand for PMICs. The biggest application of PMICs is in consumer electronics and there are near-term booms in demand for laptops, Chromebooks, smartphones and TVs. In addition, the replenishment momentum for a small number of structurally simple items such as low dropout (LDO) regulators has slowed down significantly.

However, the demand for PMICs by electronic products being structurally on the rise, some models are still experiencing shortages. Qualcomm and MTK are constrained by a shortage of mature production capacity on the foundry side, even leading to a tight inventory of PMICs for self-use.

In addition, the recovery of the automotive market and the rapid growth of electric vehicles, automotive electronics and advanced driver assistance systems (ADAS) have increased the demand for control and management of energy sources and charging technology. In addition, ICs for automotive use must pass a number of inspections and must ensure consistency and zero failure rate. Currently, IDM companies’ automotive IC backlog extends to the end of 2022.

Due to factors such as production running at full capacity and a shortage of raw materials, PMIC suppliers have currently announced longer lead times, with consumer electronics IC lead times increasing to 12 to 26 weeks, delivery times for automotive integrated circuits reaching 40 to 52 weeks and a halt in orders for certain exclusive production models.

TrendForce expects PMIC demand in 4Q21 to remain strong with shortages in overall production capacity. Led by IDM companies, PMIC prices will remain elevated. Despite pandemic-related variables and difficulties in significantly increasing 8-inch wafer production capacity, TI’s new RFAB2 factory will begin mass production in 2H22. Additionally, due to foundry plans to shift some PMIC manufacturing from 8-inch wafers to 12-inch wafers, there is a strong likelihood of PMIC shortages moderating. However, careful attention still needs to be paid to the development of future market supply.

Alan A. Seibert