Texas Instruments (TI) is set to increase prices on certain analog IC products by an average of over 10%, a strategic shift that may benefit Taiwanese companies such as MediaTek (6138) and Chi Mei (6719).

MediaTek reported consolidated revenue of NT$5.95 billion in May, a year-over-year increase of 18.6%, while Chi Mei saw NT$4.06 billion, marking a 31% increase. The PMIC power management IC industry is gradually returning to order. Analysts suggest that these businesses can seize opportunities by capturing market share from TI’s less scalable product lines.

The price hike is expected to take effect on the 15th of this month, with supply chain sources indicating that average price increases could exceed 40%, with some products seeing rises of 70%. Although currency rates present short-term challenges, the industry anticipates a return to normal conditions within one to two quarters. As the analog IC market approaches the bottom of the economic cycle, TI's strategic shift may reveal new industry opportunities.