Analog IC prices to rise in Q3

El Segundo, Calif. — Buyers should prepare for price hikes of about two percent for general-purpose analog ICs in the third quarter as a result of supply disruptions caused by the Japan earthquake and tsunami in March, reported IHS iSuppli. Analog ICs include amplifiers/comparators, interface devices and voltage regulators.

However, IHS forecasts that price increases will fall to 0.6 percent in the fourth quarter, followed by normalized seasonal patterns in the first quarter of 2012 with flat or declining pricing.
“Nearly four months after the earthquake, the Japan disaster continues to drive up pricing for general-purpose analog components, and will continue to influence availability and costs for these parts through the end of the third quarter,” said Rick Pierson, senior semiconductor analyst for IHS, in a statement. “Although the impact of the disaster on analog IC pricing has begun to weaken, analog component prices are set to maintain an upward trend in the third quarter.”

Most likely, the price hikes were driven by supply disruptions from Texas Instruments and Renesas in Japan, according to IHS research.
Texas Instruments, the world’s largest supplier of general-purpose ICs, operates two fabs in Japan that produce analog ICs that were impacted by the quake. Although the Aizu facility has returned to full production, the Miho fab will not resume 100 percent production until mid-July.

Renesas, the No. 17 general-purpose analog supplier in 2010, produces analog ICs at its facilities in Gunma and Kofu, both in Yamanashi.