Rising Prices and Extended Lead Times: Where Is the Recovery in Analog Chip Market?

01 Nine Major Global Analog Chip Firms Post Collective Growth

Based on the latest quarterly results, nine leading global analog and mixed‑signal chip manufacturers — TI, ADI, ST, Infineon, NXP, onsemi, Microchip, Renesas and MPS — all posted both year‑over‑year and quarter‑over‑quarter revenue growth.

Notably, MPS and ADI posted particularly striking year‑over‑year growth rates. Building on double‑digit growth in the prior quarter, TI, ST, NXP and others further accelerated their momentum. Demand from industrial, automotive and AI data‑center applications collectively underpinned this round of growth.

Compared with the traditional demand drivers of automotive and industrial markets, AI and data centers have emerged as the most notable incremental growth engine behind the analog‑chip recovery.

MPS serves as a prime example. In Q2 2026, MPS’s enterprise data‑center business generated revenue of USD 380.6 million, representing 164.3% year‑over‑year growth and 44.8% quarter‑over‑quarter growth. Its revenue share rose from 32.7% in the previous quarter to 38.8%. The company attributed this surge primarily to rising demand for power‑management solutions for AI and server applications. In other words, the enterprise data‑center segment alone contributed nearly 40% of MPS’s total quarterly revenue.

ADI’s figures also paint a clear picture. In its FY2026 Q3, the company delivered a 40% year‑over‑year increase in total revenue. Industrial business revenue stood at USD 1.972 billion, up 53% YoY; communications segment revenue hit USD 655 million, rising 84% YoY. ADI noted in its earnings report that growth was mainly driven by data‑center and industrial markets. By comparison, automotive revenue grew 16% YoY and consumer revenue increased 6% YoY, demonstrating significantly higher elasticity in data‑center‑related demand.

Although TI does not separately disclose revenue from its data-center business, its total revenue in Q2 2026 grew 23% year-over-year and 13% quarter-over-quarter. The company stated that the broad-based growth in the quarter was driven by industrial, data-center and automotive markets. In other words, within TI's growth mix, data centers have emerged alongside industrial and automotive as standout end markets.

The two companies share the same growth bright spots: industrial and data-center. For ADI, industrial and communications businesses were the strongest performers. TI, meanwhile, emphasizes synchronous improvement across multiple end markets, with automotive emerging from weakness as a notable new development in this quarter.

Infineon posted a record quarterly revenue of EUR 4.172 billion in its FY2026 Q3, stating that AI data-center power solutions continue to see exceptionally strong demand and remain the company's most important growth driver. Infineon also revealed that multi-year capacity reservation agreements with AI customers—already signed or under negotiation—represent cumulative revenue in the high single-digit billions of euros.

Looking at specific product lines, the analog business itself is also improving.

In addition to TI’s 26% year‑over‑year growth in its analog‑chip business in Q2, Microchip’s analog product‑line revenue rose 29.9% YoY in its latest quarter. ST’s analog, MEMS and sensor business also posted approximately 26% YoY growth. Nevertheless, divergence persists across vendors: onsemi’s analog and mixed‑signal business still registered a 2% year‑over‑year decline for the same period, while AI data centers have become its fastest‑growing business segment.

This round of analog‑chip recovery differs from previous upturns that were largely driven by automotive and industrial demand. Automotive and industrial markets remain the fundamental base, yet new demand brought by AI servers for power management, signal‑chain, isolation, clock and other products has become a key variable widening growth‑rate gaps among manufacturers.

As the two most representative players in the global analog‑chip industry, the performance of TI and ADI merits particular attention.

TI generated revenue of USD 5.46 billion in Q2 2026. Notably, TI was already in a recovery phase in the same period last year, with revenue up 16% year‑over‑year. Building on that baseline, the company still delivered 23% YoY growth and 13% QoQ growth in Q2 this year, indicating that demand recovery is further accelerating.

ADI posted even stronger growth. In FY2026 Q3 ending August 1, ADI achieved revenue of USD 4.022 billion, representing 40% year‑over‑year growth and roughly 11% quarter‑over‑quarter growth. Data centers now account for approximately 80% of its communications segment, with related optical‑communications and power businesses both more than doubling year‑over‑year. Overall, industrial and data‑center markets remain ADI’s primary growth engines.

While revenue growth reflects the return of demand‑side momentum, inventory changes offer clearer insight into where the analog‑chip cycle currently stands.

Over the past several years, “inventory destocking” has been one of the defining themes across the analog‑chip industry. Latest figures, however, suggest this destocking cycle has entered its late phase.

TI’s inventory stood at USD 4.605 billion as of Q2 2026, with inventory days falling from 222 days at the end of 2025 to 196 days. According to CEO Haviv Ilan, demand shifted rapidly in Q2. For such sudden short‑term demand spikes, inventory is the best mitigation tool, and this strategy “did help the company” during the quarter. Meanwhile, TI is ramping up factory utilization to prepare for future demand. TI specifically noted that its ability to capture opportunities in markets such as data centers stemmed from advance preparation of inventory and production capacity.

ADI’s latest inventory figures show that inventory rose by USD 83 million quarter‑over‑quarter to an all‑time high, yet inventory days dropped to 156 days, and channel inventory remained below its long‑term target of 6‑7 weeks. Management commented that customer inventory levels are still relatively low and no significant restocking activity has been observed. Nevertheless, the company is proactively building strategic die inventory and channel inventory to keep pace with accelerating demand.

The inventory profiles of these two representative analog‑chip manufacturers reveal a marked shift in industry conditions compared with the prior two years: inventory turnover is speeding up, while original manufacturers have begun proactive stocking for growth. The analog‑chip industry is gradually moving past the “inventory destocking” phase and entering a new era of “demand recovery plus proactive inventory build‑up”.

02 Manufacturers are raising prices—what about the spot market?

Since August, trading activity for analog chips on chip‑trading platforms has picked up noticeably. TI products feature most prominently, while multiple parts from ADI, ST, onsemi, Renesas and other brands have also made it onto the hot‑item lists. Certain power chips from Infineon have likewise started drawing attention.

As the two most representative vendors in the global analog‑chip market, shifts in demand for TI and ADI products often reflect, to some extent, the current market sentiment for analog chips.

After speaking with multiple spot‑market practitioners recently, we found that although they hold differing views on whether demand has expanded substantially, two observations are widely shared. First, genuine demand exists for TI and ADI components. Second, supply for certain part numbers is tight, and price fluctuations have become more pronounced than before.

On the ADI side, one distributor commented that business has remained solid since last year. The real challenge is not lack of demand, but product availability. Some part numbers have been in short supply for quite some time. Tight controls have been implemented by the original manufacturers, resulting in disordered order scheduling and deliveries. Consequently, distributors are exercising greater caution when accepting new orders.

He commented, “Products sell well once stock arrives, yet robust demand can hardly translate into actual transactions if deliveries are repeatedly delayed.” For traders specializing in ADI parts, component shortages are not entirely beneficial. While certain constrained part‑numbers may boost per‑order profit, overall transaction value could shrink due to lower shippable volumes.

Another veteran spot‑market dealer focusing on ADI also noted that current demand for ADI components remains strong, to the point that “every batch sold reduces available stock”. End‑customers across industrial, medical and automotive sectors are placing orders. Some part numbers that previously sold sluggishly have now become highly sought‑after. Nevertheless, general‑purpose components still face fierce price competition; not all products are seeing price hikes.

Regarding specific product lines, one industry practitioner mentioned, “ADI’s LT series has been red‑hot with the most dramatic price increases. Other series are also rising, though not to such an extreme degree.”

Market momentum for TI has also picked up notably recently. A dealer handling TI allocated orders stated that demand has heated up visibly this month. Lead times for numerous part numbers are extending, with some components reaching roughly 50 weeks.

That said, perceptions within the same market vary.

Some industry practitioners argue that overall demand for TI and ADI components remains fairly steady, without any sudden short‑term surge. What is truly noticeable is growing price volatility. For instance, while a handful of TI part numbers have posted sharp price gains, most products have seen only modest increases. Widespread arbitrary quoting persists in the marketplace, and a considerable volume of inventory still consists of slow‑moving dead stock. Some market participants even state bluntly that overall demand for ADI is only moderate.

This suggests TI and ADI are witnessing a structural market scenario characterized by solid demand, constrained supply and heightened price swings, rather than a broad‑based rally across all part numbers accompanied by an across‑the‑board demand explosion.

Price hikes, in turn, are further reinforcing this market expectation.

Since the start of this year, TI has implemented three formal price adjustments, effective in April, July and October respectively. ADI has rolled out two broad‑based price revisions, taking effect on February 1 and September 13.

In terms of the drivers behind price hikes, TI’s multiple price adjustments are mainly attributed to rising supply‑chain costs and shifting market conditions, compounded by recovering demand from industrial control, automotive and data‑center markets. ADI’s price moves, initially driven largely by inflation‑related cost pressures early in the year, have gradually come to be fueled by a combination of strengthening demand, capacity‑expansion investments and higher costs in the second half of the year.

Meanwhile, pressure on the supply side has become increasingly evident.

As of the end of August, market reports from Fusion, Lianchuangjie and other sources indicated that lead times for numerous TI products have extended to 20‑48 weeks, with certain part numbers stretching even further. Quota shortages are particularly acute for MicroSiP micro system‑in‑package power modules (‑SILR suffix). Market rumors also suggest that under TI’s new‑round October price adjustment, AI‑server‑related PMICs in the TPS and UCC series, together with selected high‑speed signal‑chain products, saw price increases ranging from 15% to 85%.

For ADI, lead times for some constrained components have also expanded substantially. According to market sources, lead times for certain MPNs of precision operational amplifiers have exceeded 400 days.

Taken together, TI and ADI are currently seeing solid demand, tight supply for selected parts and heightened price volatility. Nevertheless, market divergence remains pronounced: high‑demand components face supply constraints while fierce competition persists for general‑purpose parts.

03 Conclusion

According to next‑quarter guidance, all nine major overseas analog and mixed‑signal chip manufacturers are projected to post sequential revenue growth. MPS and Infineon are expected to deliver the most notable increases, while TI, Microchip, ADI, NXP and others will also maintain growth. Several firms foresee concurrent improvements in gross‑margin or profit‑margin outlooks.

Overall, AI data centers are bringing incremental new demand, and industrial as well as automotive markets keep recovering. Even so, significant divergence persists across the analog‑chip spot market. High‑demand components remain tight with selective price hikes, while competition continues for general‑purpose parts, and there has been no broad‑based demand explosion. Compared with the full‑scale component shortage back in 2021, this upturn represents more of a structural recovery.