AI-Driven Demand Sparks PMIC Price Surge? Industry Giant Dnex: Multiple Peers Announce Price Increases One After Another

Driven by the dual forces of expanding AI computing power demand and tightening supply of mature process technologies, a new round of price increases in the Power Management IC (PMIC) industry is rapidly taking shape, and the bargaining power of Taiwan-based PMIC manufacturers has seen significant improvement.

Recently, GBU Chairman Wu Jinchuan publicly revealed that since early May, numerous industry peers have successively issued price hike notices. Against the backdrop of tight supply, insufficient capacity, and continuous extension of delivery lead times, GBU has begun negotiating price increases with customers. This is currently the most direct and representative signal of price hikes within the industry.

According to reports, the supply and demand pattern for 8-inch mature process wafers has changed markedly. Some wafer foundries have taken the lead to raise their foundry quotations, and the market expects that the bargaining power of analog IC and PMIC supply chains will continue to rise. The second-half business outlook of Taiwan’s PMIC manufacturers such as Silergy, GBU, and Excelliance is thus attracting wide attention from institutions.

In the first five months of this year, the operational results of the three companies diverged, but with multiple themes such as AI power management, DDR5 PMICs, and fan motor driver ICs providing support, analysts generally expect their businesses to gradually heat up in the second half of the year.

The supply and demand landscape for 8-inch mature process wafers is undergoing substantial changes. TSMC and Samsung have successively adjusted their 8-inch capacity allocations, and the global supply increase for 8-inch wafers is limited. Meanwhile, demand is rising simultaneously for AI power management ICs, power devices, display driver ICs, and automotive/industrial control, together driving up capacity utilization rates.

Industry analysis points out that over the past two years, PMICs were weighed down by inventory corrections in consumer electronics, putting sustained pressure on both prices and utilization rates. This year, as demand from AI servers, data centers, DDR5, automotive, and industrial control takes over, mature process capacity is no longer loose, and PMICs are expected to transition from a cyclical recovery to further structural growth.

GBU’s consolidated revenue in May was NT$749 million, up 0.41% month-on-month and down 3.28% year-on-year; consolidated revenue for January to May was NT$3.606 billion. Although year-on-year revenue was under slight pressure, Chairman Wu Jinchuan revealed that since early May, many peers had successively issued price hike notices. Under the pressure of tight supply, capacity shortages, and lengthening lead times, GBU is negotiating price increases with clients. Meanwhile, the market is particularly focused on GBU’s product position in the DDR5/LPDDR5 PMIC area, which is seen as one of the key growth drivers for the company’s future operations.

Silergy’s consolidated revenue in May was NT$1.911 billion, down 5.11% month-on-month but up 31.59% year-on-year; January-May consolidated revenue was NT$8.784 billion, up 23.21% year-on-year, the strongest growth among the three companies. In recent years, Silergy has actively expanded its presence in data centers, industrial, automotive, and high-end power management products. Notably, its AI ASIC-related Vcore products have been sent for sampling and are moving forward with mass production as planned; if customer validation progresses smoothly, this product line could become a new growth momentum for the company next year.

Excelliance’s consolidated revenue in May was NT$686 million, up 0.51% month-on-month and up 15.42% year-on-year, hitting a 48-month high; cumulative consolidated revenue for January to May was NT$3.348 billion, up 12.72% year-on-year. Excelliance’s highlight is not only the PMIC demand recovery. Analysts believe that Excelliance’s fan motor driver ICs are also benefiting from rising cooling demands in AI PCs, gaming laptops, servers, and industrial equipment. As AI computing drives power consumption in end devices ever higher, cooling and power control requirements are rising in tandem. Thus, with dual themes of PMICs and cooling driver ICs, Excelliance is viewed as one of the beneficiaries in the current industry upcycle.