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[News] Reports of Price Increases for Certain MCU Components as Prices Gradually Stabilize


2023-09-21 Semiconductors editor

According to a report by China’s Jiwei, there have been indications of a positive turnaround in the Chinese MCU market recently. Some components are experiencing inventory replenishment, and certain MCU manufacturers have noted an upward trend in component prices, suggesting a gradual stabilization of prices. Additionally, there is optimism that wafer production costs in the coming year may become more favorable, which could gradually boost profit margins.

It is worth noting that the consumer electronics market has been sluggish for over a year, particularly for consumer-grade general-purpose MCUs, which have seen inventory accumulation. Due to the high inventory levels, many MCU manufacturers have been actively working to reduce their stock levels, leading to intermittent price wars.

Recently, Fudan Micro disclosed research findings indicating that the recovery of the end consumer market is still a gradual process, putting significant pressure on IC design companies. In the consumer market, products such as MCUs and storage solutions have seen some recovery in sales but have not yet shown a noticeable improvement in prices. Additionally, the security and identification product lines face substantial competitive pressure.

Looking at the industry as a whole, the clearance of inventory has not disappeared; it is still expected to return to normal levels by the end of this year or the first half of the next year. For IC design firms, the resolution of high-priced inventory is anticipated to continue impacting profit margins in the latter half of the year.

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