Price increase cycle begins: Semiconductor industry enters a new phase of simultaneous volume and price growth

At present, the global semiconductor industry is entering a new round of a price-hike cycle. After the prices of memory chips continued to climb, analog chips, power devices, and even the wafer foundry outsourcing segment have all begun price increases. Several manufacturers have recently issued price adjustment notices, and the industry’s upward pricing trend is clear. Analysts believe that as downstream demand rebounds, industry inventories are worked through, and the supply-side landscape improves, business conditions in the semiconductor industry are likely to continue recovering. As the price-transmission effect gradually becomes visible, the semiconductor industry’s available room for profit is expected to open up. The industry is moving from a de-inventory cycle to a new stage in which both volume and prices rise together, and structural investment opportunities are beginning to emerge. (China Securities Journal)