Article by: TrendForce
Despite a chaotic first half of the year, overall demand for power management ICs (PMICs) is still relatively good, according to TrendForce.
According to TrendForce, market conditions in the first half of the year (1H22) were chaotic and there was uneven demand for chips with different functionality. Given the global development of electronic devices and power systems, the overall demand for power management ICs (PMIC) is still relatively good. PMICs are used in consumer electronics, communications, computer science, industrial control, automotive and other fields. In 2H22, supply and demand gradually diverged and demand for Automotive Switching Regulators, Multi Channel PMICs was strongest.
According to TrendForce, there are different specifications and types of PMICs. Even products that rely on use cases such as battery charging and management, voltage references, and USB power delivery ICs all fall into this category.
In the consumer electronics field, it was true that the demand for linear and switch regulators with relatively simple functions and structures in the panel, home appliance and consumer notebook markets fell in the first half from 22-30%. However, multi-channel PMICs with slightly longer lead times will come under pressure from price competition in 2H22 as OEMs and ODMs control inventory to levels below two months.
As for the industrial control and automotive markets, these fields have always been vital battlefields ripe for conquest and have higher demands on PMIC voltage accuracy, temperature control and reliability. With the trend towards Industry 5.0 and auto electrification, product prices will remain strong in 2H22, but this field is mainly dominated by IDM players that have been in the market for decades such as Texas Instruments (TI), Infineon Technologies , Analog Devices Inc. (ADI), STMicroelectronics (ST) and onsemi, to name a few, while the proportion of small and medium-sized fable operators is relatively low.
Looking at the current supply status, from the perspective of IDMs with a PMIC market share of more than 61%, thanks to extensive product portfolios, stable quality and irreplaceability coupled with strong demand for production capacity, the current lead time for new orders is still long, with an average lead time of 36 to 46 weeks for switch controllers and 40 to 50 weeks for multi-channel PMICs. However, some existing orders with an original lead time of more than 52 weeks may ship four to 16 weeks earlier. In addition, from the perspective of small and medium-sized Fabless operators, as they are not at the level of IDM manufacturers in terms of product specifications and areas of application, the lead time is generally shorter than that of large IDM manufacturers, usually no more than 28 to soften.
TrendForce notes that during last year’s major deficits, Fabless and IDM players shared in the dividends provided by scarcity-driven price increases. However, as the wafer production capacity grows moderately and delivery times are gradually normalized, dealers, agents and small and medium fable operators who had originally increased their prices by 20-40% due to tight supply were naturally under pressure to moderate prices if result in a rapid accumulation of stocks.
Therefore, in various application areas in 2H22, Approved Vendor List (AVL) preferred suppliers will maintain a balanced supply and demand status, while non-preferred suppliers with a single product type and limited application areas may need to lower prices to sell volume and inventory. Overall, however, the demand for PMICs as a subset of all IC products is still relatively stable in 2H22.