May. 31, 2023 /SemiMedia/ -- According to insiders in the electronic components supply chain, Texas Instruments began to lower chip prices in the Chinese market in May this year in order to regain market share lost due to the chip shortage in the past two years.
The insider said that when chips were in short supply in the past two years, it was difficult for customers to buy chips from Texas Instruments, which accelerated the process of end users in China adopting chips produced by Chinese manufacturers, and caused Texas Instruments to lose part of the market. It can be seen from the recent financial report of Texas Instruments.
The insider further stated that there is no fixed range for this price cut, but it is aimed at the chip prices of Chinese manufacturers. In terms of products, he believes that power management chips are the main target. Due to the long chip verification cycle and scattered categories in the industrial and automotive fields, it is difficult for Texas Instruments’ price reduction to have an impact in a short period of time, so it has not yet had an impact. However, in other areas, such as communications and consumer electronics, China's homegrown analog chip companies are already feeling the pinch.
The market believes that Texas Instruments' price reduction strategy in China will show results as soon as possible in the second quarter of this year.