Texas Instruments (TI) has reportedly initiated a sweeping price adjustment starting August 4, affecting more than 60,000 product part numbers—nearly 20 times the scope of its June price hike. According to multiple supply chain sources, the increases have already been communicated to end customers via distributors, with only a few strategic clients exempted.

The price increases range from 10% to 30%, with over 40% of affected products seeing hikes above 30%. The adjustment focuses on long-lifecycle sectors such as industrial control and automotive electronics. Key components like digital isolators and isolation driver ICs have risen by more than 25%.

Unlike the June adjustment, which targeted signal chain products, this round reflects a more structural strategy. TI appears to be guiding customers toward newer-generation solutions by significantly raising prices on older models. For instance, a DCDC converter released in 2018 saw a 22% increase, while its replacement was adjusted by only 5%.

Key Trends by Segment:

 1. Industrial Control – Over 40% of industrial components saw price hikes. A 16-bit ADC used in factory automation rose from $3.20 to $4.10, a 28% increase.

 2. Automotive Electronics – Automotive-grade components experienced premium increases. BMS isolation chips for EVs went up 22%, while infotainment power management ICs rose between 18% and 25%.

 3. Consumer and Communications – Price hikes were more moderate, ranging from 5% to 15% for power management and RF front-end chips. Notably, TI's Q2 revenue from communications surged 50% year-on-year, suggesting alignment with strategic shifts.

Behind the Price Hike:

The increases are driven by multiple factors. One is cost pressure: TI's gross margins in China have long trailed its global average, and rising raw material costs—such as high-purity silicon wafers—have squeezed profitability.

Additionally, TI saw revenue growth across industrial and personal electronics markets in Q1 and Q2 2025, creating a window for pricing adjustments. After years of aggressive pricing to gain market share, the company is now pivoting to focus on margin protection.

While the move could temporarily impact TI's market share, it opens the door for domestic Chinese chipmakers such as SG Micro and Sitrus Tech, who are accelerating design-ins across industrial and automotive applications. So far, spot market reactions have been limited, but industry observers expect ripple effects: downstream companies may optimize inventory and supply chains, and competitors like ADI and Infineon could follow suit.

Ultimately, TI's move reflects not just a pricing strategy, but a broader industry shift from scale to value creation.