1. Current Market Demand for ST Chips

The demand for ST microcontrollers (MCUs) remains strong, particularly for general-purpose MCUs used in consumer electronics, medical devices, and industrial applications. Based on market purchase and sales data, the most popular ST chips include:

• STM32F103C8T6 – A widely used entry-level MCU, consistently ranking among the top 10 across all brands. Its demand remains high, with a slight inventory decrease in March.

• STM32F407ZET6 – A high-performance MCU that has seen the fastest rise in popularity recently. Inventory levels dropped sharply in early March but showed a slight recovery by the end of the month.

• STM32F405RGT6 – Another high-performance MCU with increasing demand, experiencing a gradual inventory decline after the Chinese New Year but showing some replenishment in March.

Compared to previous years, the demand for these chips has been notably higher during the same period in 2024.

2. Price Trends of ST MCUs

Throughout 2024, ST MCU prices continued their downward trend, reaching their lowest point in December. However, prices began to rebound in early 2025:

• STM32F103C8T6 increased from ¥3.5 in December to ¥4-5, a 14%-43% rise.

• STM32F407ZET6 increased from ¥10.5 to ¥11-15, a 5%-43% rise.

• STM32F405RGT6 increased from ¥10 to ¥12-15, a 20%-50% rise.

Other models, such as STM32F103RCT6, STM32F407VET6, STM8S003F3P6TR, and more, have shown a similar trend—prices bottoming out and starting to recover.

While the spot market has seen noticeable price increases, price inversion (where market selling prices are lower than distribution prices) remains an issue for authorized distributors. The extent of price inversion varies based on procurement batches and costs.

3. Why Are Prices Increasing?

Market analysts suggest that this recent price increase is not due to a supply shortage but rather a price correction back to normal levels. Several key factors are driving this change:

• Price Correction: Since mid-2022, ST chip prices have been in free fall. However, the decline slowed down in 2024, setting the stage for the recent rebound.

• Inventory Reduction: According to a February 2025 UBS report tracking 118 global distributors, MCU inventories declined by 7% month-over-month, leading to lower stock levels. Some analysts believe that after prolonged inventory clearance, supply has tightened, pushing prices back up.

• Extended Lead Times: A March 2025 report from Future Electronics indicates that ST’s MCU lead times are generally increasing, potentially impacting market stability and driving price fluctuations.

4. Industry Opinions and Future Outlook

• Most market experts see this price increase as a natural correction, rather than a speculative price surge as seen during past chip shortages.

• End-user demand is gradually recovering, with higher-volume MCUs experiencing the most significant price increases.

• Spot market pricing remains competitive, but authorized distributors are still facing price inversion due to their higher procurement costs and stock pressures.

AXTEK: Your Trusted Independent Distributor for ST Microcontrollers

With 14 years of experience in electronic component distribution, AXTEK Electronic Co., Limited has a large inventory of ST Microcontrollers available for immediate purchase. If you are looking for reliable sourcing and competitive pricing, contact us today:sales01@axtekic.com.