Analog chips get pricing power
Analog semiconductor suppliers like Texas Instruments, Infineon and NXP are raising prices as automotive demand and inflation lift margins — TI’s new $40 billion North Texas facility is online and shifting more production to North America. That pricing leverage is keeping analog sector multiples elevated even as some cyclical end markets correct. (investing.com) (denisontx.org)
UBS’s Global I/O Semiconductors team projects analog revenue growth to continue through 2026 after Q4 2025 revenue rose 11% year-over-year, with consensus estimates now calling for ~18% YoY growth in Q1 2026 and ~16% for full-year 2026. (investing.com)) Analog suppliers have set staggered effective dates for broad price adjustments this quarter: Analog Devices implemented portfolio-wide increases effective Feb. 1, 2026, and Infineon and multiple peers notified customers of further adjustments taking effect April 1, 2026; several reports show NXP’s April 1 notice and TI internal pricing changes slated for early April. (semimedia.cc)) Magnitude of the changes is uneven by product: industry notices and supply‑chain reports cite Analog Devices’ increases in the ~10–30% range by product class and supply‑chain leaks suggesting some TI adjustments could hit as high as ~85% on specific part families. (trendforce.com)) Suppliers have told customers that revised pricing will apply to orders and backlogs scheduled to ship on or after the effective dates, and distributors are reporting extended lead times for key analog and power parts—some lines showing 20–40 week delays—raising the chance that backlog shipments will be re‑priced. (smbom.com)) Texas Instruments’ SM1 300 mm fab in Sherman began production on Dec. 17, 2025, is part of a multi‑facility U.S. expansion representing roughly $40 billion to date, and TI says the site will ramp to produce “tens of millions” of chips daily while creating several thousand jobs in North Texas. (ti.com)) UBS highlights that pricing leverage is supporting richer sector valuations—analogs trade at about a 21.6x 12‑month forward P/E versus a 10‑year average near 19x—and the bank’s preferred analog picks for this cycle include STMicroelectronics, Renesas and Texas Instruments. (investing.com))
