Major chip manufacturer NXP plans to raise prices starting next month

After Texas Instruments and Infineon, another global chip manufacturer, NXP Semiconductors, has announced a price increase.

According to the latest price-increase letter, NXP plans to adjust the pricing of certain product lineups effective April 1 this year. The rationale behind this price adjustment is that the current market environment has been changing continuously, and these changes have driven a sharp rise in costs across multiple key areas, including raw materials, energy, labor, and logistics.

Based on the disclosed information, this price increase does not cover all categories, but which specific sub-products are involved has not yet been officially released in a detailed list.

NXP focuses on core areas such as automotive electronics, industrial IoT, security identification, and communication infrastructure, where it holds leading positions globally—especially in automotive-grade microcontrollers (MCUs), in-vehicle networking, and security chips.

Currently, its automotive business contributes more than half of the company’s revenue. Its processors use mature technologies and support functions such as driving safety, vehicle connectivity, and infotainment systems.

The company’s 2025 fourth-quarter earnings report released in February showed that in the fourth quarter, revenue was $3.34 billion, up 7% year over year, exceeding analysts’ expectations of $3.3 billion. Non-GAAP earnings per share were $3.35, also above the expected $3.31. As the core pillar of the company’s performance, automotive business revenue in the fourth quarter was $1.88B, up 5% year over year, but below the average analysts’ expectation of $1.89 billion. Industrial and IoT business revenue increased 11% quarter over quarter, while the mobile business increased 13% quarter over quarter, indicating that inventory digestion in consumer electronics and the industrial sector has begun to show results.

At the same time, the company expects first-quarter revenue to be between $3.05 billion and $3.25 billion this year. The midpoint of this range will be above the average analysts’ expectation of $3.09 billion.

From the latest industry (300832) updates, NXP’s peers, Texas Instruments and Infineon, have both already issued price-increase notices this year. Among them, Texas Instruments recently announced that it will raise prices for certain devices effective April 1 this year.

According to people familiar with the industry chain, this round of pricing adjustments may affect parts of Texas Instruments’ analog and embedded product lines. The price increase could range from 15% to 85%, covering key products such as digital isolators and power management ICs, depending on the device and product series.

Previously, Texas Instruments had adjusted prices by 10%–30% for areas including industrial control and automotive electronics.

Infineon, meanwhile, issued a price-increase notice in February this year stating that due to continued tight supply of power switches and related chips, along with rising costs for raw materials and infrastructure, the company will raise the prices of these products starting April 1, 2026.

The notice letter shows that the semiconductor market has seen a huge surge in demand for some of Infineon’s products, mainly due to large-scale deployments of artificial intelligence data centers, which has led to shortages of some power switches and related chips. To support the ever-growing demand, Infineon needs to make substantial additional investments to expand wafer-fab capacity. In addition, the company is also facing increases related to raw material and infrastructure costs.

“Previously, the company has always responded to rising investment costs by improving internal efficiency, but we have now reached a stage where we can no longer fully absorb the related costs, so we must share this portion of the cost increase with customers and partners.” Infineon said.

Looking at the situation in China, in December 2025, after analog chip maker ADI announced price increases for its entire product lineup effective from February this year, domestic chip manufacturers such as Micron? Z Microelectronics, Guoke Micro (300672), Amcor? Jingjit? (not sure), and Silan Microelectronics (600460), as well as Biyimicro, also successively announced product price-increase information.