2026-01-29 10:59Investment Rating - The report indicates a positive investment outlook for the semiconductor industry, particularly favoring companies like Texas Instruments, Renesas, and STMicroelectronics as preferred picks for exposure to the recovery [2]. Core Insights - The semiconductor inventory is starting to build in the channel, with a month-over-month increase of 4% and a year-over-year average price increase of 2% [2]. - Pricing trends show a general decline in the low to mid single digits through 2023 and 2024, stabilizing in 2025, with signs of increases in 2026 [3]. - The report highlights that MCU and MPU inventories have increased by 7% and 31% month-over-month, respectively, driven by Microchip's significant inventory build [4]. - The pricing environment remains supportive, with average year-over-year pricing flat on a revenue exposure weighted basis [26]. Summary by Sections Inventory Trends - Inventory levels are generally stable, with MCU inventories showing a 323% increase compared to January 2023 [32]. - Nexperia's unit inventory has stabilized, with a month-over-month increase of 4% and a year-over-year price increase of 30-50% [8][10]. Pricing Trends - The Like-for-Like Price Index has been restated to better reflect pricing trends, showing an average price increase of 1% month-over-month and 2% year-over-year [3][25]. - Pricing for Texas Instruments has increased by approximately 13% for two consecutive months, while Infineon's pricing has decreased by around 8% [5]. Company Observations - Microchip's unit inventories have increased significantly, although the reasons for this increase remain unclear [5]. - The report notes that pricing for transistors and diodes has seen limited impact from disruptions, with average pricing remaining stable [20][22].