What impact does the price increase of all TI products this time have on the electronics industry?

Texas Instruments (TI) will launch its largest ever price increase on August 4, 2025, involving over 60000 product models (nearly 20 times larger than the June price increase), covering industrial control, automotive electronics, consumer electronics, and other fields. The increase is generally 10% -30%, with over 40% of products experiencing price increases exceeding 30%, and only a very small number of strategic customers exempted. The recent price increase has had a profound impact on the electronics industry, which can be summarized as follows:

1、 Direct Impact: Cost Pressure and Supply Chain Risks
1. Significant increase in costs
Automotive electronics: The increase in automotive grade chips ranks first (such as BMS isolation chips up 22% and in car power management ICs up 18% and 25%). Due to the usage of over 650 chips per bicycle, the cost of core components for car companies has sharply increased by 15% to 20%, intensifying the pressure of the price war for new energy vehicles.   
Industrial control: Industrial control chips have increased prices by over 40%, while high-precision ADCs (such as 16 bit industrial ADCs) and key components such as digital isolators have increased prices by over 25%, directly pushing up the manufacturing costs of automation equipment.   
Consumer electronics: The growth rate of power management chips and other products is relatively moderate (5% -15%), but it still puts pressure on low gross profit products.

2. Deterioration of supply chain stability
The delivery cycle of TI has been extended from 8 weeks to 16 weeks, and there has been a phenomenon of "out of stock" for products such as industrial ADCs, resulting in some companies (such as robot manufacturers) delaying their mass production plans.   
Small and medium-sized manufacturers are forced to increase their safety stock, resulting in a 10% to 15% increase in cash flow ratio and pressure on capital turnover.
2、 Structural Opportunities: Accelerating Domestic Substitution and Reshaping Industry Landscape
1. Domestic chips enter a window period
Alternative space opens up: TI's price increase weakens its price advantage, while domestic manufacturers such as Shengbang Shares and Sireipu quickly enter the supply chain of BYD and others in the mid to low end market (with a 70% overlap in part numbers) with price competitiveness (20% -30% lower).   
Breakthrough in the high-end field:
Automotive grade chips: Nanochip micro isolation chips have a domestic market share of over 60%, and automotive grade sensors have entered NIO's supply chain; Siripu's automotive products are expected to be imported into Tesla.   
Industrial chip: Xinhai Technology's 24 bit ADC accuracy benchmarks ADI, and its market share in the field of intelligent instruments has increased to 8% 10%.   
It is expected that by 2025, the self-sufficiency rate of automotive grade chips will increase from 5% to 10%, and the substitution rate of industrial high-precision ADCs will increase from 10% to 20%.
2. The transformation of industry competition logic
TI has shifted from "grabbing market share at low prices" to "ensuring profits", and the gross profit margin of domestic manufacturers is expected to rebound by 35 percentage points (such as Si Rui Pu turning to profit priority after losses in 2024).   
Policy support increases: the deduction ratio for R&D expenses has been raised to 200%, and the second phase of the large fund is tilted towards the analog chip field, promoting domestic R&D intensity to approach TI (22% vs 25%).
3. Collaborative upgrading of industrial chain
The full chain collaboration of design, manufacturing, packaging, and testing (such as the cost reduction of 25% by developing 55nm BCD process with SMIC) has reduced the delivery cycle to 12 weeks, approaching the level of TI.



?  3、 Domain specific impacts and differences in response
The following table summarizes the degree of impact and response trends in the main application areas:

|Application areas | Typical product price increase | Progress of domestic substitution|
|Automotive Electronics | BMS Chip 22%, PMIC 1825% | Nanochip ASILD Certified BMS Chip Accelerated Replacement|
|Industrial control | 16 bit ADC 28%, isolator 25%+| Xinhai 24 bit ADC market share rises to 10%|
|Consumer Electronics/Communication | Power Management IC 515% | Sireipu Consumer Shipping Volume Increases by 45%|

Automotive electronics: becoming an alternative main battlefield, benefiting from the penetration rate of new energy vehicles exceeding 50% and the surge in chip usage (500 → 3000 chips/vehicle).   
Industrial automation: The price increase of TI's old models has forced customers to adopt domestically produced high-performance solutions (such as PLC front-end chips).   
Consumer electronics: Under mild price increases, substitution power is weak, but domestic manufacturers still seize the market through cost advantages.

4、 Suggestions for Enterprise Response Strategies
1. Short term emergency response
Negotiate with TI agents to obtain exemptions or delays in price increases, and moderately stockpile key part numbers (be alert to inventory risks).   
Switch to a new model of the same brand as TI that has not increased in price (such as the old DCDC model increasing by 22% vs the new model only increasing by 5%).

2. Medium - to long-term transformation
Diversification of supply chain: Accelerate the introduction of domestic solutions such as Shengbang and Naxinwei, and establish a list of alternative suppliers.   
Technical collaboration: Collaborate with domestic manufacturers to customize chips (such as through cooperation between Siripu and SMIC).   
Policy utilization: Apply for tax incentives and special funds to reduce substitution costs.

TI's recent price increase is not only a stress test for the electronics industry, but also a catalyst for promoting supply chain autonomy: short-term pains are inevitable, but in the long run, it will accelerate the replacement of domestic high-end chips and the upgrading of the entire industry chain. Enterprises need to flexibly respond based on the characteristics of the field - prioritizing localization in the automotive and industrial sectors, and optimizing the cost structure in consumer electronics; At the same time, by leveraging the synergy window between policies and industrial chains, we can transform the crisis into an opportunity for technological advancement. It is expected that the self-sufficiency rate of domestic analog chips will increase from 16% to 25% by the end of 2025, and the revenue of local leading manufacturers is expected to exceed 5 billion yuan.