Core war warning: Under the tide of ADI price increases, domestic substitution is expected to usher in a turnaround.
Some time ago, the American Analog Devices company set off a huge ** in the global semiconductor industry. Analog Devices suddenly announced that it would raise the price of its products by 10% to 20% starting in February 2024, which caused quite a stir in the industry and broke the tranquility of the industry.
It can be seen from the production increase letter issued by Analog Devices that this decision did not come out of thin air, but due to the imbalance between supply and demand in the global semiconductor market, as well as the continuous production cost. In recent years, due to the impact of the epidemic, geopolitical tensions, the recovery of the global economy, and the pressure on raw materials, manpower, transportation, etc., the operating costs of chip manufacturing companies such as ADI have continued to rise. In order to maintain the stability of conventional raw materials, Analog Devices has adopted a strategy of increasing prices in some conventional products to cope with rising costs.
ADI is the world's second-largest producer of analog integrated circuits, with products in a variety of industries such as consumer electronics, industrial, automotive, data centers, and more. This increase is bound to have a great impact on ADI downstream enterprises and consumers, especially on the investment planning of key industries such as automobiles, communications, and industry, and even the development of the entire industry, which will have a huge impact and pressure.
However, darkness always accompanies dawn. ADI** is undoubtedly a once-in-a-lifetime opportunity for China's local analog integrated circuit manufacturers. In the face of the readjustment of the global semiconductor industry chain, China's chip companies should seize the opportunity to strengthen independent research and development and accelerate the road of domestic substitution. After all, in this global semiconductor race, only local companies can stand at the center of the world's technology.
China's semiconductor industry has also encountered many such problems in its history. Every time a large international company waves the big stick of adjustment, the local company is a warrior on the battlefield, tenacious and bold to seek a breakthrough. Some time ago, the news of ADI's price increase was like a clarion call for war, and once again awakened our long-dormant will to fight and innovative spirit.