Overview: TI Raises Prices Across 3,300+ Part Numbers

In a bold shift, Texas Instruments (TI) has increased prices across over 3,300 analog IC part numbers, with hikes ranging from 15% to over 100%. The change, effective from June 15, 2025, marks a major strategic move as the company transitions from a price-war mindset to a profit-driven model.

 Key Facts:

• ~9% of parts see price increases ≥100%

• 55% of parts rise between 15–30%

• Targeted at general-purpose analog, precision ADC/DAC, op-amps, and LDO regulators

• Not due to shortages, but aimed at margin recovery

"This is not about supply constraints—it's about profitability," stated analysts at Bernstein.
(Sources: SMBom, Investing.com, SemiMedia)

Why Now? Market Trends Behind the Price Hike

According to Germany's FBDi and UK distributor Anglia, the semiconductor market is entering a recovery phase after nearly two years of inventory overhang.

“Suppliers are now warning that if customers don't place backlog orders, they will face severe lead time issues later this year,”
said John Bowman, Marketing Director at Anglia.

Lead times for many analog components have begun to rise again, and distributors forecast a tight supply in Q4 2025.

TI's $60 Billion Domestic Expansion Plan

Simultaneously, TI has committed to over $60 billion in manufacturing investment across Texas and Utah, building seven new fabs in Sherman, Richardson, and Lehi. This is the largest mature-node chip investment in U.S. history.

• Texas: $46 billion across multiple sites

• Utah (Lehi): $15 billion investment

• Target: Producing billions of chips daily for automotive, industrial, and consumer sectors

From Price War to Margin Defense

In 2023, TI initiated aggressive price cuts, which contributed to a decline in gross margin from 68.8% (2022) to 56.8% (Q1 2025).

Now, the price increases signal a tactical pivot: preserving profitability amid rising manufacturing costs and a recovering demand cycle.

TI's Q1 2025 revenue was $4.069 billion, up 11% YoY, with Q2 forecasts between $4.17B and $4.53B—above Wall Street expectations.

What You Should Do Now

For OEMs / EMS:

• Review your BOMs and identify impacted TI parts.

• Secure allocation and consider second-source cross references.

• Place Q3–Q4 orders early to avoid supply disruptions.

For Distributors:

• Adjust pricing strategy based on new MPN costs

• Communicate lead time expectations to clients

• Offer alternates or spot-buy support for high-runner parts

Final Thoughts

TI's pricing shift is more than just an adjustment—it's a clear sign that the analog chip market is moving out of oversupply. For those who act early, there's still time to build inventory and prepare for tighter availability in H2 2025.

Need Help Navigating TI Price Changes?

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Contact us today or request a quote to stay ahead of the curve: sales01@axtekic.com