In early June 2024, Texas Instruments (TI) confirmed a global price increase involving more than 3,300 part numbers, effective from June 15. This marks a sharp pivot from the aggressive pricing strategy TI adopted over the past year—and it’s already impacting the global electronics supply chain.

How Much Are Prices Increasing?

Based on preliminary data, the price increases are significant:

• ≥100% price hike: 9% of affected parts

• 50–100%: 5%

• 30–50%: 1%

• 15–30%: 55%

• <15%: 30%

Signal chain components, especially ADCs and op-amps, are seeing the steepest hikes—some over 100%, which caught the market by surprise. Other categories like LDOs, isolation chips, and DC-DC converters—which previously saw sharp discounts—are rising around 20%, more in line with expectations.

 Why Is TI Changing Course?

After years of expanding its 12-inch fab capacity and enjoying gross margins above 70%, TI shifted gears in 2023 and started an intense price war, particularly targeting Chinese analog chipmakers. TI famously claimed it would match "any domestic price, no matter how low."

But the outcome was painful:

• Gross margin fell from 70.2% (Q1 2022) to 56.8% (Q1 2024)

• Revenue declined for nine consecutive quarters

• Shareholder pressure mounted

Now, TI is clearly refocusing on profit over market share, aiming to protect product line margins—even if that means leaving low-margin customers behind.

What This Means for You — and Why It’s an Opportunity

If you're sourcing components for consumer electronics, smart home devices, or small appliances, this pricing shift could squeeze your budget.

But there’s a silver lining:
This change opens the door for high-quality Chinese analog IC brands that are now mature, stable, and cost-effective.

How AXTEK Can Help

At AXTEK, we don’t just distribute components—we solve sourcing problems.

We specialize in helping global buyers find reliable, proven local alternatives to major brands like TI, especially in analog and power categories.

We can recommend cost-effective, quality-assured Chinese brands that cover:

• ADCs / op-amps

• LDOs / DC-DC converters

• Isolation ICs

• Interface ICs

• Capacitive touch controllers

• And more

All components we recommend come with long-term supply support, professional FAE guidance, and original factory traceability.

Looking for TI alternatives?
Let AXTEK help you find the right match — quickly and reliably.

Email us sales01@axtekic.com now to discuss your BOM needs.