Texas Instruments Plans Broad Price Hike on 3,300+ Parts According to industry sources, Texas Instruments (TI) is reportedly planning a price increase for certain product lines. A preliminary list of affected parts was finalized on June 2, covering over 3,300 part numbers. The price adjustment is scheduled to take effect on June 15.
Tiered Price Increases: Up to 100% for Select SKUs
The magnitude of the price increases shows a clear gradient distribution:
1. Around 9% of the part numbers will see price hikes of 100% or more
2. 5% will increase by 50% to 100%
3. 1% by 30% to 50%
4. 55% by 15% to 30%
5. The remaining 30% will rise by less than 15%
Overall, the average increase exceeds 10%, with some part numbers seeing hikes as high as 40% to 70%, reflecting strong upward momentum. The increases are mainly focused on three categories of products: those with low profit margins, legacy part numbers, and those where purchase commitments have not been met.
Signal Chain Components See Steepest Hikes
What’s particularly noteworthy is that some signal chain-related parts—such as analog-to-digital converters (ADCs) and operational amplifiers—are seeing increases of more than 100%, far exceeding market expectations.
Global Action, With a Strong Impact in China
The price hike is a global initiative, not limited to the Chinese market. However, in China, the affected part numbers are primarily low-margin products, including op-amps, interface ICs, ADCs, and similar categories. Although no official price adjustment letter has been released, some institutions have already verified the rumors regarding the TI price hike.
From Market Share Grab to Margin Protection
Over the past few years, TI has adopted aggressive pricing strategies to squeeze competitors, at the cost of profitability. In Q1 2022, TI’s gross margin peaked at 70.2%, but by Q1 2024, it had declined to 57.2%.
This round of price hikes—aimed at eliminating inefficient products and optimizing the product mix—marks a strategic shift from pursuing market share through low pricing to focusing on maintaining profit margins. This shift also presents opportunities for domestic analog chip companies in China.
Opportunity for Chinese Analog IC Makers
Chinese vendors such as SG Micro and 3Peak, whose main products overlap with TI’s mid- to low-end part numbers, were previously restrained by TI’s price competition. Now, they may have an opportunity to follow suit with their own price increases or expand their market share. End customers, seeking to avoid TI’s steep price hikes, may accelerate the adoption of local alternatives—especially in long-cycle sectors such as industrial and automotive.
Signs of Broader Industry Recovery
In addition to the price hikes, other positive signals are emerging that point to an industry recovery. TI’s Q1 revenue reached $4.069 billion, up 11% year-on-year and 2% quarter-on-quarter. Its Q2 revenue forecast ranges from $4.17 billion to $4.53 billion, above market expectations of $4.1 billion.
Meanwhile, ADI noted in its recent earnings call that all subsegments within the industrial sector are recovering, with channel inventories declining and sequential revenue growth expected next quarter.