ADI's price increase officially landed on September 13th, and the market is closely watching whether TI will follow in the wave of simulated chip price increases

The price adjustment notice from Analog Devices (ADI), a leading analog chip company, has been confirmed recently. Starting from September 13th, the entire product line will implement new prices. This is ADI's second round of large-scale price increases in 2026, marking the continued deepening of the global analog chip price increase cycle. Market attention is synchronously focused on another giant, Texas Instruments (TI), and the industry is generally concerned about whether it will continue to follow up on this round of price increases.

According to the price adjustment letter issued by ADI to global distributors and direct customers, this adjustment covers all categories of commercial standard, industrial grade, and military high reliability products, and the increase shows a gradient differentiation: the increase in ordinary commercial materials is relatively mild, the increase in industrial grade products is even higher, and some military grade high reliability models can have a maximum increase of up to 30%. ADI stated in the letter that the price adjustment is due to widespread market demand growth, inflationary pressures in the semiconductor supply chain, and rising manufacturing costs; The incremental profits obtained from this round of price increases will be invested in the expansion of wafer fabs and packaging testing production lines to alleviate the current product delivery pressure of up to 6 months and improve the supply chain supply capacity. As early as July this year, ADI had already issued an external warning of an extended delivery cycle, reminding customers to lock in orders six months in advance. From the delivery warning to the full line price increase, there was only a two month interval.

Before ADI finalized the price adjustment point, the global simulation and power semiconductor industry had already formed a trend of multiple manufacturers relay price increases. ST (STMicroelectronics) has implemented its third round of price adjustments for the year on August 23, covering MCU, power devices, sensors, and automotive products; Marvell、 Domestic and foreign manufacturers such as Zhuosheng Microelectronics and National Technology have also successively released price adjustment plans, with the main focus on industrial control, automotive electronics, data centers and other tracks. As a global analog chip duopoly, the pricing actions of ADI and TI have always been industry benchmarks. ADI's price increase across the board has further amplified market discussions on TI's pricing rhythm.

From the supply chain information, TI has issued a price adjustment notice to customers on September 1st, planning to adjust the prices of multiple simulation and power management products under its umbrella. This will be TI's third round of price increases in 2026, after the previous two rounds of price adjustments were implemented in March and May. According to channel information, TI's price adjustment this time adopts a differentiated strategy by model. The range of increase for AI server supporting power IC is about 15% -25%, while industrial and automotive products are raised synchronously. The adjustment range for general consumer part numbers is relatively limited. Unlike ADI's one-time price adjustment across the entire product line, TI's pricing strategy is more inclined towards refined stratification, prioritizing price increases for power management and isolation devices with tight supply and demand and high added value, while retaining price elasticity for universal models and reducing the impact on large-scale consumer customers.

Industry analysis points out that the underlying logic of the two leading companies synchronously adjusting prices is highly consistent: the explosion of AI computing infrastructure drives demand for power management and signal chain simulation chips; The production capacity of 8-inch mature processes continues to be tight, and wafer, packaging and testing, and labor costs are rising. But there are significant differences in their strategies: ADI chooses to uniformly adjust prices across all product lines, prioritizing the resolution of capacity expansion funding and delivery pressure; As the largest manufacturer in the industry, TI has a wider customer base, a huge volume of long-term cooperative orders, and a more conservative pace of price adjustments. It mainly focuses on targeted price increases by batch and part number, and will not simply replicate ADI's comprehensive price increase model.

For downstream hardware manufacturers, this round of price increases will continue to raise BOM costs. The most prominent customer pressure is in the fields of industrial automation, energy storage, automotive electronics, AI servers, etc. On the one hand, it is necessary to evaluate the cost changes of ADI's existing orders, and on the other hand, closely track TI's price adjustment rules, recalculate material costs, and adjust stocking plans. At the same time, the continuous increase in overseas chip prices will accelerate the process of domestic substitution, and downstream customers will begin to actively evaluate alternative solutions from domestic analog chip manufacturers to diversify the supply and price risks of single overseas part numbers.

Looking ahead to the future, the industry believes that the current simulated chip price increase has not yet peaked. The long-term demand support for AI servers, new energy vehicles, and industrial automation, coupled with the long expansion cycle of mature process capacity, is expected to continue the tight supply and demand pattern of analog chips until next year. The final extent of TI's price adjustment will become a key signal for judging the intensity of this round of price hikes. The follow-up market will continue to track changes in the delivery dates of the two major players, channel inventory levels, as well as follow-up actions from other international manufacturers such as NXP and Infineon.