NOVOSENSE CFO warns AI demand crowding out chip capacity could tighten supply for years
At a September 24 semi-annual performance briefing, NOVOSENSE Microelectronics CFO Zhu Ling stated the semiconductor industry faces tight supply as downstream enters a restocking cycle, driven by AI demand consuming fabrication capacity. She warned tightness could persist for years if AI investment remains high. Upstream foundries and packaging firms have raised prices since late 2025, and gold/copper costs are rising. NOVOSENSE has issued price hike notices and is negotiating with customers. The company also outlined its server power chip portfolio, estimating the primary/secondary side analog chip market at several billion yuan, potentially reaching 200 billion yuan.
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NOVOSENSE CFO Says Industry Supply Tight, AI Demand Crowding Out Capacity
At a September 24 semi-annual performance briefing, NOVOSENSE Microelectronics CFO Zhu Ling addressed market concerns regarding industry景气度 (sentiment), price trends, and server power business布局 (strategy). She stated that the current industry supply is tight, with the downstream sector entering a restocking cycle. Zhu Ling attributed this to AI demand crowding out significant production capacity, warning that if AI investment remains high, the tight supply situation could persist for several years. She detailed the transmission chain of this tightness, noting that upstream wafer foundries and packaging/testing houses have been raising prices since late 2025, alongside rising commodity costs for gold and copper. In response, NOVOSENSE has sent price hike notices to customers and is negotiating adjustments, which Zhu Ling said would help restore the company's profitability. On the demand side, she confirmed the downstream sector has entered a restocking cycle. Regarding server power, NOVOSENSE has deployed a complete product portfolio for the primary and secondary sides, with some products already in volume production for top-tier customers. The company estimates the current market for analog chips on these sides is tens of billions of RMB, with potential to reach 200 billion RMB or more. In 2026, NOVOSENSE established a dedicated high-performance power product line to provide full-chain power supply solutions for server power customers.
Read sourceNaxinwei CFO Says AI Investment Tightening Chip Supply for Years
At a semi-annual performance meeting on September 24, Zhu Ling, CFO of Chinese analog chip company Naxinwei (Novosense), stated that the current industry supply is tight and downstream sectors have entered a restocking cycle. She attributed the tightness to AI investment consuming large amounts of chip fabrication capacity, warning that if AI investment remains at high intensity, the tight supply situation could last for several years. Upstream wafer foundries and packaging/testing plants have been raising prices since late 2025, and commodity costs such as gold and copper are also rising. Naxinwei has issued price increase letters and is negotiating with downstream customers, with some progress made. The company believes rational price adjustments will help restore profitability. Separately, Naxinwei outlined its server power supply chip strategy, covering primary, secondary, and tertiary sides. It estimates the current market for primary and secondary side analog chips at several billion yuan, potentially reaching 20 billion yuan or more. In 2026, the company established a dedicated high-performance power product line aiming to provide full-chain power solutions for server power customers.
Read sourceNOVOSENSE Microelectronics Sees Supply Tightness, AI Capacity Squeeze Driving Multi-Year Chip Crunch
On September 24, during its semi-annual performance meeting, NOVOSENSE Microelectronics' CFO Zhu Ling stated that the semiconductor industry is currently experiencing supply tightness, with downstream sectors entering a restocking cycle. Zhu attributed the shortage partly to AI demand consuming significant fabrication capacity, warning that if AI investment remains strong, the tight supply situation could persist for several years. Upstream wafer foundries and packaging/testing houses have begun adjusting prices since late 2025, while commodity costs for gold and copper have also risen. NOVOSENSE has issued price increase notices and is negotiating with downstream customers, reporting some progress. The company views these rational price adjustments as beneficial for restoring profitability. Separately, NOVOSENSE outlined its server power supply product strategy, covering primary, secondary, and tertiary sides. It has deployed a full product portfolio for the primary and secondary sides, with some products already in volume shipments to top-tier customers. The company estimates the current market for analog chips in these segments at several billion yuan, with potential to reach 20 billion yuan or more. For the tertiary side, which features high chip usage and rapid technology iteration, NOVOSENSE established a dedicated high-performance power product line in 2026, aiming to provide complete power supply solutions for server power customers.
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Naxinwei: Chip supply tight, downstream enters restocking cycle, AI demand strains capacity
At a September 24 semi-annual performance meeting, Naxinwei (Novosense) CFO Zhu Ling stated that the semiconductor industry is experiencing tight supply as downstream sectors enter a restocking cycle. She attributed the shortage partly to AI investments consuming significant fab capacity, warning that if AI investment remains strong, the tight supply could persist for several years. Upstream wafer foundries and packaging/testing firms have begun raising prices from late 2025, while commodity costs for gold and copper are also rising. Naxinwei has issued price hike notices and is negotiating with customers, reporting some progress. The company believes rational price adjustments will help restore profitability. Separately, Naxinwei outlined its server power supply chip strategy, covering primary, secondary, and tertiary sides. It has deployed a full product portfolio for the first two sides, with some products already in volume supply to top customers. The current market for primary and secondary side analog chips is estimated at several billion yuan, potentially reaching 20 billion yuan or more. For the tertiary side, which uses high volumes and fast-iterating chips, Naxinwei established a dedicated high-performance power product line in 2026 to provide full-chain power solutions for server power customers.
Read sourceNaxinwei CFO: Industry Supply Tight, Downstream Enters Restocking Cycle
On September 24, at its semi-annual performance meeting, Naxinwei (纳芯微) CFO Zhu Ling stated that the current industry is experiencing tight supply, with downstream sectors entering a restocking cycle. She noted that AI is consuming a large amount of production capacity, and if AI investment remains strong, the tight supply situation is expected to last for several years. Upstream wafer foundries and packaging and testing plants have been adjusting prices since the end of 2025, and commodity prices such as gold and copper are also rising. The company also introduced that its server power supply products cover primary, secondary, and tertiary sides, and it has deployed digital isolators, isolated drivers, isolated sampling, and current sensors for the primary and secondary sides. The article is sourced from Securities Times and published on East Money.
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