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Naxin Micro: Industry supply tight, downstream enters restocking cycle, price hike notices sent
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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.
Source report
On September 24, during the semi-annual performance briefing, Naxinwei's Chief Financial Officer Zhu Ling stated that the current industry supply situation remains tight. The downstream sector has entered a restocking cycle, while AI is consuming a significant amount of production capacity. If AI investment continues at its current intensity, the tight supply environment is expected to persist for several years.
According to Zhu Ling, upstream wafer foundries and packaging and testing facilities have been adjusting prices since the end of 2025. Costs of commodities such as gold and copper have also risen. The company has issued price adjustment notices and is currently in negotiations with downstream clients, with some progress already achieved. Zhu noted that rational price adjustments will help restore the company's profitability.
In addition, the company introduced that server power supplies are divided into primary, secondary, and tertiary sides. For the primary and secondary sides, Naxinwei has deployed a complete product portfolio, including digital isolators, isolated drivers, isolated sampling components, current sensors, interface chips, and MCUs. Some products have already entered volume production for leading customers. Preliminary estimates indicate that the current market size for analog chips on the primary and secondary sides is in the tens of billions of RMB, with potential to reach 200 billion RMB or more in the future.
On the tertiary side, chip usage is high and technology iteration is rapid. In 2026, the company established a dedicated high-performance power product line, aiming to provide full-chain power supply solutions for server power customers.
Source: Securities Times
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证券时报网Eastern
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NOVOSENSE CFO warns AI demand crowding out chip capacity could tighten supply for years