The U.S. analog chip giant ADI recently issued a price increase letter to its distributors, saying that "due to the supply chain was affected by inflation in the past year, although we tried our best to reduce the impact on end customers and did not raise prices, but now we must raise prices on some models of chip products to maintain our gross margin level." ADI stressed that the price increase is not intended to expand profit margins.

According to the price increase letter circulated in the industry, ADI will increase the price of the entire product line, including new orders and existing booking requirements, but did not disclose the specific rate of increase, the price increase will be implemented from September 25, 2022 onwards.

Figure source: industry insiders

It is reported that ADI mainly produces high-end analog chips that can be used for heat source management and thermal control, the target market is mainly industrial and automotive and other fields, which can avoid the impact to a certain extent in the current weak market demand for consumer electronics end market.