According to Taiwan media Juheng.com, according to the recent supply chain conditions, the power management chip (PMIC) inventory destocking time may be longer than expected, and it is expected that the industry will complete destocking in Q3 next year, and demand is not as strong as expected.
On the consumer side, the current inventory level of downstream products such as mobile phones, PCs, and consumer electronics is still high, and the actual dematerialization speed is lower than expected, and the inventory days of major system manufacturers are about 130 days to 150 days, which is significantly higher than the average level of 80 days to 100 days in previous years, and it is expected that there will be a chance to see a turnaround in the second quarter of next year.
In terms of automotive applications, some suppliers pointed out that in PMIC, except for the automotive field, the inventory adjustment of the entire industry supply chain will not be completed until the second and third quarters of 2023. Automotive module manufacturers said that some automotive chips have begun to be reduced recently, including driver ICs, PMICs and some control ICs. However, the production capacity has not reached the stage where it can be completely relaxed, and the supply satisfaction rate of automotive electronic components in 2023 will only be about 80%.
In terms of price, some manufacturers are also constrained byTexas Instruments. In October, it was reported that Texas Instruments will reduce PMIC prices, and the price war in the power management chip (PMIC) market is about to break out. Texas Instruments is rumored to have adopted a more flexible pricing strategy for PMIC as new capacity is released and demand expectations dim.
According to supply chain sources, Texas Instruments will offer discounts of about 8% to 15% depending on the product and quantity.
After the release of Texas Instruments’ 12-inch production capacity, the cost of 12-inch is 35%-40% lower than that of 8 inches, providing it with more space in price strategy, and customers will be more willing to return to its products, especially automotive and industrial customers.
Some insiders said that the arrival of Texas Instruments’ flexible pricing strategy is earlier than expected, and the price reduction is also more than expected, and other manufacturers in the industry may follow up with price reductions, or even more to maintain market share, worried that the price war in the first half of next year may be more intense.
At the same time, PMIC manufacturer customers are demanding that PMIC prices return to pre-pandemic levels, 20%-30% lower than the current level, and low-pressure PMIC prices are expected to decline.
The chairman of power management chip manufacturer Silicon Lijie said that the customer inventory adjustment cycle was extended to the first half of next year than originally expected. At present, many orders are postponed, in addition to weak consumer products, industrial control products have also continued to be revised downward, only the demand for new energy vehicles is strong, and it is expected that the fourth quarter and the first quarter of next year will be in the inventory adjustment stage.
Post time: Jan-05-2023