Core Viewpoint - Texas Instruments (TI) has initiated a significant price increase on August 4, marking the largest adjustment in its history, affecting over 60,000 part numbers, which is nearly 20 times the 3,300 products impacted in June [1] Price Increase Details - The price adjustment, effective from August 4, shows an overall increase concentrated between 10%-30%, with 41.3% of the affected part numbers experiencing increases exceeding 30%. Key components in industrial control and automotive electronics are particularly impacted, with some older LDO products seeing price hikes of up to 30% [2] Classification Analysis - The price increase exhibits three main characteristics: 1. Industrial control products, which account for over 40% of the adjustments, are a primary focus, with specific components like a 16-bit ADC chip rising from $3.2 to $4.1, a 28% increase [3] 2. Automotive electronics are a major contributor to the price hikes, with automotive-grade products generally seeing higher increases than consumer-grade, such as power management ICs for in-car entertainment systems rising 18%-25% [3] 3. Consumer electronics and communication devices are also affected, with power management chips for personal electronics experiencing increases of 5%-15% [3] Background and Impact - Several factors contribute to this price increase, including cost pressures due to TI's lower gross margin in China compared to global averages and rising raw material costs. The recent recovery in demand for core markets like industrial and personal electronics has provided a window for this price adjustment [5] - TI is shifting from a strategy focused on gaining market share through low prices to one aimed at maintaining profit margins, which may impact market share in the short term but allows for opportunities for domestic alternatives [6] - While the spot market has not shown significant volatility, this price adjustment may trigger a chain reaction, prompting downstream companies to accelerate inventory digestion and adjust supply chains, with other international manufacturers potentially following suit [6]