Chinese analogue chipmakers raise prices as mature-node producers poised to gain

China’s analogue chip sector has joined a global wave of price increases, a move that could hand mature-node domestic producers a rare competitive opening against US and European rivals. Several homegrown firms, including Silan Micro (士兰微) and SG Micro (圣邦微电子), have announced or signalled price adjustments in step with global leaders such as Texas Instruments, Analog Devices, NXP, Infineon, Onsemi and STMicroelectronics. The key angle: higher analogue prices ease pressure on margins and create headroom for Chinese suppliers to invest and compete.

Market response and drivers

The repricing is being driven by cascading upstream cost inflation and booming demand tied to artificial-intelligence applications, which has pushed wafer, packaging and materials prices higher across the supply chain. It has been reported that Texas Instruments’ latest round will lift prices on selected products by as much as 85 per cent, and Novosense Microelectronics reportedly told customers the move was due to “continued volatility in global semiconductor markets and sharply rising costs of core materials.” Analogue chips — which handle continuous real‑world signals such as sound, temperature and light — are spreading price pressure that was first most visible in memory and foundry segments.

Geopolitical implications

Why does this matter beyond margins? Because export controls and trade policy from the US and its allies have mostly targeted bleeding‑edge logic and advanced-node equipment, not mature-node analogue and power devices that are critical to consumer electronics and industrial goods. That means China’s mature-node suppliers can be less affected by sanctions while still capturing profitable business if pricing dynamics erode Western incumbents’ advantage. Observers say this could accelerate localisation of certain supply chains; it has been reported that Western vendors will be watching customer retention closely, and some may respond with their own pricing or go-to-market changes.

Will the increases stick, and will they translate into durable market share gains for Chinese firms? Short term: suppliers can shore up margins and finance capacity. Long term: the balance will depend on whether demand remains strong, whether cost inflation stabilises, and how trade tensions evolve.