Giantec: Power Management Chip Supply Tight, Prices to Rise for First Time in 5 Years

(Central News Agency, reporter Zhang Jianzhong, Hsinchu, 11th) Wu Jinchuan, chairman of power management chip maker Giantec, said today that the power management chip market is in short supply and costs are rising. Since competitors have already announced price increases, Giantec has decided to follow suit and raise its product prices, marking the first price hike in five years.

Giantec held its annual shareholders' meeting today. In an interview, Wu Jinchuan said that the rapid advancement of artificial intelligence (AI) is driving significant demand, and due to capacity constraints, this has led to a supply shortage of power management chips.

Wu Jinchuan stated that besides the increasingly tight market supply and rising costs, competitors announced price increases in early May. Giantec has decided to follow suit and implement price increases gradually.

Wu Jinchuan noted that it has been about five years since the last price increase. The 2021 price hike was driven by a surge in urgent orders due to the work-from-home trend during the pandemic, which caused a major chip shortage and led to a wave of price increases.

He said that the third quarter is expected to be the operational peak for the company this year. The biggest current operational challenge is securing production capacity. Based on supply conditions, he expects the market to remain in a state of supply shortage next year.

To meet customer demand, Wu Jinchuan said that in addition to placing orders with foundries in Taiwan, Giantec is also producing in South Korea. Production from South Korea accounts for approximately 20% to 30% of the total supply, enhancing supply chain resilience. (Editor: Zhang Junmao) 1150611