AI demand triggers PMIC price surge? Major industry player Titan: Multiple peers have issued price increase notices one after another.

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Driven by both the expansion of AI computing power demand and the tightening of mature process supply, a new round of price increases in the Power Management IC (PMIC) industry is accelerating, and the bargaining power of Taiwanese PMIC manufacturers is showing substantial improvement.

Zhixin Chairman Wu Jinchuan recently revealed publicly that since early May, multiple industry peers have successively issued price increase notices. Against the backdrop of tight supply, insufficient capacity, and continued extension of delivery times, Zhixin has begun negotiations with customers for price increases. This is currently the most direct and representative signal of price hikes in the industry.

According to reports, the supply-demand structure of 8-inch wafer mature process has undergone a significant shift, with some foundries already leading in raising foundry quotations. The market expects the bargaining power of the analog IC and PMIC supply chain to continue to increase. The operations outlook for Taiwanese PMIC manufacturers such as Silergy, Zhixin, and MPS is therefore drawing broad attention from institutions.

In the first five months of this year, the three companies showed mixed operating performance, but supported by multiple factors such as AI power management, DDR5 PMICs, and fan motor driver ICs, analysts generally expect that operations will gradually improve in the second half of the year.

Supply-demand reversal in 8-inch wafers, price hike logic established

The supply-demand pattern of 8-inch wafer mature processes is undergoing a substantial transformation. TSMC and Samsung have successively adjusted their 8-inch capacity configurations, resulting in limited growth in global 8-inch wafer supply, while demand for AI power management ICs, power devices, display driver ICs, and automotive/industrial control has been heating up simultaneously, jointly pushing up capacity utilization rates.

Industry analysis points out that in the past two years, PMICs were dragged down by corrections in consumer electronics inventories, with quotations and utilization rates under continued pressure. This year, as demand from AI servers, data centers, DDR5, automotive, and industrial control takes over, mature process capacity is no longer loose, and the PMIC sector is expected to move from a cyclical recovery towards structural growth.

Zhixin's consolidated revenue in May was NT$749 million, up 0.41% from the previous month but down 3.28% year-on-year; cumulative consolidated revenue from January to May was NT$3.606 billion. Although revenues showed a slight year-on-year decline, Chairman Wu Jinchuan revealed that since early May, multiple industry peers have successively issued price increase notices. With tight supply, insufficient capacity, and prolonged delivery times, Zhixin is negotiating price hikes with customers. At the same time, the market is especially watching Zhixin's product layout in DDR5/LPDDR5 PMICs, which is seen as one of the main drivers of the company's future growth.

Silergy's consolidated revenue in May was NT$1.911 billion, down 5.11% month-on-month but up 31.59% year-on-year. Cumulative revenue from January to May was NT$8.784 billion, up 23.21% year-on-year, showing the strongest growth momentum among the three companies. In recent years, Silergy has actively expanded its product portfolio in data center, industrial, automotive, and high-end power management. Among them, AI ASIC-related Vcore products have completed sample deliveries and are continuously advancing toward mass production; if customer verification proceeds smoothly, this product line is expected to become a new growth driver for the company next year.

MPS's consolidated revenue in May was NT$686 million, up 0.51% month-on-month and 15.42% year-on-year, hitting a new high in the past 48 months; cumulative revenue from January to May was NT$3.348 billion, up 12.72% year-on-year. The highlights of MPS's operations are not limited to the recovery in PMIC demand. According to analysis, MPS’s fan motor driver ICs have also benefited from the increased cooling needs of AI PCs, gaming laptops, servers, and industrial equipment. As AI computing pushes up the power consumption of end devices, both cooling and power control demand are upgrading. Thus, MPS, with its dual focus on PMICs and cooling driver ICs, is considered one of the beneficiaries of this industry upcycle.

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