NEWS FLASH: TI/NXP/Foundries Brewing New Round of Price Hikes, Top Distributors See Significant Growth

Upstream Dynamics

• Texas Instruments (TI) to Raise Prices Again, Effective July 1
  Market sources indicate that TI issued a notice on May 7, 2026, announcing a price increase for its full product line starting July 1, 2026. The specific increase will vary depending on materials and technology. This marks TI's fourth large-scale price hike in nearly two years, following the last one initiated in 2024.
• NXP Announces Latest Price Hike, Effective June 1
  Sources indicate that NXP notified the market on May 1, 2026, regarding a partial product price adjustment effective June 1, 2026. This is NXP's second price increase within 2026, after the previous one launched in April.
• Mature Process Capacity Brewing a New Round of Price Hikes
  According to TrendForce, amid capacity reductions at TSMC and Samsung, a new wave of price hikes for mature processes is brewing. Global 8-inch foundry production capacity is expected to remain on a downward trend until 1H2027. However, utilization rates for related production lines at major foundries will be maintained above 80%. TSMC is also reducing 12-inch mature process capacity, and other players are benefiting from the shift in demand.

 Enterprise Dynamics

• Infineon's FY26Q2 Revenue €3.812 Billion, Strong AI-Related Demand
  Infineon reported FY26Q2 revenue of €3.812 billion, up 6% YoY and 4% QoQ; Net profit €301 million, up 30% YoY and 18% QoQ. The company expects power solutions for AI data centers to reach ~€1.5 billion in the current fiscal year, further increasing to ~€2.5 billion next year. Automotive business orders show positive progress, with growing software-defined vehicle market share.
• Winbond's Q1 Revenue Doubled, Benefiting from AI
  Leading IC distributor Winbond reported Q1 2026 revenue of NT$49.43 billion, up ~100% YoY and ~44% QoQ; Net profit NT$7.01 billion, up ~159% YoY and ~67% QoQ. Growth is mainly driven by AI boosting data center and communication product demand, alongside steady recovery in non-AI industrial applications.
• Arrow Electronics Reports Strong Performance, Far Exceeding Market Expectations
  Top distributor Arrow Electronics reported Q1 2026 revenue of $9.47 billion, up 39% YoY, exceeding company guidance. GAAP net income was $235 million, up 195% YoY. Global components revenue was $6.64 billion (+39% YoY); Global enterprise computing solutions revenue was $2.83 billion (+39% YoY).
• Avnet Reports Strong Performance, Asia-Pacific Revenue Accounts for Nearly 50%
  Avnet reported FY26Q3 revenue of $7.12 billion, up 33.95% YoY; Electronic components revenue $6.67 billion (+35% YoY); Asia revenue $3.46 billion (+39% YoY), accounting for nearly half of total revenue. All terminal markets achieved YoY growth; Industrial, network, and data center saw double-digit sequential growth. All regions' order-to-ship ratios were >1, reflecting strong new order demand.
• Sony and TSMC Establish Japanese CIS Joint Venture
  Sony and TSMC announced they will jointly establish a JV in Japan focused on image sensors. Leveraging this platform, both parties will promote deep application of AI in imaging and explore new opportunities in automotive, robotics, and other physical AI fields.
• NationalChip Deepens Cooperation with Top PMIC Manufacturer
  NationalChip announced on May 8 a deeper strategic cooperation with a leading PMIC manufacturer. MCU+Power solutions have achieved mass production in AI servers, digital power, automotive electronics, and power tools, gaining recognition from global AI server leaders and cloud computing/new energy customers.

 Application Dynamics

• Apple to Introduce Intel as Chip Foundry
  Reports indicate Apple and Intel have reached a preliminary agreement after over a year of negotiations. Intel will foundry some of Apple's self-developed chips, marking Apple's move to break its exclusive reliance on TSMC. Initially, this will likely focus on entry-level chips (some iPad/Mac M-series), potentially expanding to non-Pro iPhone A-series in the future.
• Apple Doubles MacBook Neo Production Target for 2026
  Research firm Cuprum reports Apple has asked suppliers to double the 2026 MacBook Neo production target from 5-6 million units to 10 million units to ease supply shortages. A key bottleneck is the supply of A18 Pro chips, forcing Apple to pay high premiums to secure volume.
• Samsung Stops Selling All Home Appliances in China
  On May 6, Samsung announced it will cease sales of all home appliances (TVs, displays, etc.) in mainland China. This follows rumors of a major strategic adjustment; post-adjustment, China may only maintain complete operations in mobile and memory sectors.
• AI Companies Actively Investing in SK Hynix Capacity Expansion
  Reports show AI companies are actively proposing investments in SK Hynix's production line expansion, even offering to purchase expensive equipment like ASML EUV lithography machines. However, SK Hynix is extremely cautious. Currently, SK Hynix's available capacity is basically zero, and new capacity will take 2-3 years to come online, unable to change the short-term supply-demand imbalance.
• TSMC's Arizona Phase 3 Fab Nearing Completion
  Reports indicate that on May 5, 2026, TSMC held a topping-out ceremony for its third fab (Fab21 P3/PH3) in Phoenix, Arizona. The facility will introduce 2nm-class advanced processes and have N2 and A16 manufacturing capabilities, with mass production planned before 2030.
• ByteDance Reportedly Plans to Increase AI Infrastructure Spending by 25%
  Multiple reports indicate ByteDance has raised its 2026 AI infrastructure spending plan to over 200 billion RMB, up at least 25% from the previous preliminary budget of around 160 billion RMB. Funds will mainly be used for AI chip procurement, data center construction, and supply chain strategy adjustments.

Data & Outlook

• Counterpoint Research:
  Despite falling shipments, global smartphone revenue in Q1 2026 still grew 8% YoY to $117 billion. High-end model demand and price increases drove the average selling price (ASP) up 12% YoY to $399, a new high. The market is still expected to face pressure this year, with a recovery not anticipated until H2 2027.
• TrendForce:
  Q2 2026 MLCC market shows "Strong AI demand, weak consumer demand" divergence. Sunlord has already notified Chinese agents to raise prices on low-capacity consumer products (6-13 RMB). Yageo is negotiating selectively with some negative-margin items, while Murata and TDK have not yet publicly stated positions. However, the overall pricing atmosphere is shifting from wait-and-see to tentative increases. Looking ahead, due to ASIC projects ramping up from Q3 and high-end MLCC supply tightness, high-value product allocation will continue to tilt towards high value-added products, with high-end MLCC prices expected to move steadily upwards in H2 2026.