China’s power management IC (PMIC) suppliers have initiated substantial price cuts amid rapidly falling demand for consumer electronics in China, reported Digitimes on September 29.

Although PMIC demand has dwindled, competition for market share has intensified, said industry sources.

Chinese PMIC makers have benefited a lot as the country steps up efforts to substitute imports and boost self-sufficiency over the last few years. Leading Chinese PMIC manufacturers such as SG Micro(圣邦微电子), Shanghai Belling(上海贝岭), Chipown(无锡芯朋微电子), and Silergy(矽力杰) have all witnessed rapid growth. However, as PMIC demand falls, price wars are reemerging, an industry insider noted.

Taiwan region’s PMIC companies have not been directly involved in the price wars, but remain conservative about 2023 market prospects, according to the sources.

PMIC makers in Taiwan region will not make any major price adjustments in the short term unless requested by major customers, mainly because the overall costs of upstream wafer foundries have yet to decline, Digitimes added, quoting the source.