The average sales price of power management IC (PMIC) is expected to increase 10% up to the first half of 2022, market research firm TrendForce said.
PMICs are used to supply power to electronic devices.
Like other chips, there is currently a shortage of them due to the COVID-19 pandemic that caused a high demand for IT devices.
PMICs are also in high demand from electric vehicles and 5G smartphones, which is further exasperating the shortage.
TrendForce said the price of the chips will hit their highest in six years due to the 10% increase in average sales price.
Another cause of the shortage of PMICs is because they are made in 8-inch foundries, which have a limited capacity to manufacture more chips as the equipment used are older than 12-inch foundries.
Most foundry companies operating 8-inch foundries have already told customers that they will increase service prices by up to 20%.
However, TrendForce noted that the shortage will likely somewhat ease during the second half of 2022 as Texas Instruments begins mass production of PMICs at its RFAB2 fab as more foundry companies start manufacturing PMICs suing their 12-inch wafer factories.