On March 2, reports surfaced that GigaDevice, a publicly-listed company renowned for its analog chips, recently declared a price hike for select products, effective from March 1. GigaDevice clarified that the primary impetus behind the price increase is the escalating costs resulting from a structural imbalance between supply and demand in the mature process sector. As of now, a sweeping price increase trend across the industry has not materialized. However, it remains a possibility that more domestic manufacturers might adopt similar price hikes for their core product lines in the future.

It has been reported that this round of price increases encompasses both consumer electronics and automotive electronics, with a primary focus on product lines that have been subjected to fierce competition and have experienced squeezed profit margins. GigaDevice intends to implement differentiated pricing strategies, taking into account factors such as the technical barriers, customer concentration, market competition, and the ability to pass on costs for each product line. Simultaneously, the company will consider the significance of customers and the sustainability of business operations, ensuring that the extent and scope of price increases are reasonably controlled. This approach aims to strike a balance between cost pressures and market acceptance, thereby preserving long-term cooperative relationships and profitability.