Prices and delivery times for analog chips are surging, with Texas Instruments (TI) leading the charge by increasing prices for various analog components by a whopping 30%. In some cases, prices have even doubled. This strategic move by TI is aimed at bolstering profit margins rather than addressing supply shortages. During the pandemic, over-ordering coupled with waning demand resulted in significant inventory backlogs. However, as these inventories are gradually cleared, market analysts anticipate a positive turnaround in the second half of 2025.

Post-pandemic, enhancing supply chain resilience has emerged as a top corporate priority. Generative AI is revolutionizing supply chain risk management, while distributors are also noticing encouraging signs of market recovery. TI's price hike and extended lead times reflect the ongoing dynamics within the analog chip market, highlighting the ongoing challenges and opportunities for industry players.