July 1, 2025 /SemiMedia/ — Texas Instruments is raising prices for a range of analog and data converter chips, with some devices seeing up to a 100% increase, according to analysts at Bernstein. The move is aimed at boosting profit margins rather than responding to component shortages.

Alongside the price adjustment, TI is scaling up its manufacturing footprint. It is expanding production at its 300mm wafer fab in Richardson, Texas, and plans to invest $60 billion to build three additional fabs in the U.S., reinforcing its domestic manufacturing strategy.

The global semiconductor industry is still working through an inventory correction cycle. A surplus that built up during COVID-era shortages—when customers overordered from multiple suppliers—has weighed on demand. German distribution group FBDi expects a market recovery by the second half of 2025.

“Five years after the pandemic began, supply chain resilience has become a top priority,” said Simon Hinds of supply chain analytics firm Octpart. “Companies are diversifying suppliers, investing in automation, and improving digital capabilities to mitigate risk.”

Generative AI is also emerging as a transformative tool in supply chain management. “By analyzing both structured data like inventory and transactions, and unstructured sources such as news articles and social media, GenAI offers a holistic view of potential risks and disruptions,” Hinds added.

Distributors are starting to see demand rebounding. John Bowman, Marketing Director at UK-based Anglia, noted that vendors are urging customers to place orders now, warning that longer lead times could return later this year.