On November 3, multiple media outlets reported that NXP, a Dutch semiconductor company and global automotive chip leader, has issued a price adjustment letter to distributors. Affected by rising costs of raw materials, energy, labor, logistics, and upstream suppliers, the company plans to raise prices on some distribution and direct supply product lines, with the new rules officially effective from January 1, 2027. This is already NXP's third price adjustment notice in 2026.

NXP's main business covers automotive processors, MCUs, and wireless connectivity chips, while also developing Bluetooth and SparkLink multi-mode short-range communication solutions. After this round of price increases is implemented, the market is widely focused on whether this price adjustment marks the start of a new round of chip shortages or is simply price transmission under pure cost pressure. Based on its third-quarter financial report data, it can be judged that this round of price adjustment is a rolling transmission of input costs to some part numbers, rather than a simultaneous price increase across all product lines.

NXP's third-quarter performance data released on October 27 shows that the company's total revenue for the period was 3.786 billion US dollars, a year-on-year increase of 19%; automotive business revenue was 2.070 billion US dollars, a year-on-year increase of 13%, firmly ranking as the company's largest revenue segment. The non-GAAP gross margin for the period reached 58.6%, up 1.6 percentage points from the same period last year. It is worth noting that the company's channel inventory remained at 11 weeks, higher than the 9-week level in the same period last year and flat with the second quarter.

Revenue is rising and gross margin continues to improve, but channel inventory has not declined in tandem, which is fundamentally different from the price increases triggered by chip shortages in 2021. The company's financial report also disclosed that third-quarter distribution channel revenue was 2.244 billion US dollars, a year-on-year increase of 20.3%, faster than the 18.0% growth of the direct supply channel; distribution revenue accounted for about 59% of the company's total revenue.

Because the distribution business involves book prices, price protection, and replacement debit arrangements, the actual net price of the same product varies for different customers and different delivery batches. Industry analysis believes that this round of price adjustment only transmits cost pressure in batches for some part numbers, and there has not been a situation of simultaneous price increases of the same magnitude across all product lines.

Under overall volume expansion, automotive chip categories are uneven in hotness, and supply and demand show clear divergence. The vehicle market is growing steadily, providing demand support for automotive electronics, but not all chips are equally in shortage.

Statistics updated in October by the International Organization of Motor Vehicle Manufacturers show that global automobile production in 2025 reached 96.4 million units, a year-on-year increase of 3.9%; sales reached 99.8 million units, a year-on-year increase of 4.7%. The industry's long-term growth space is also considerable: the global automotive chip market is expected to grow from $77 billion in 2024 to $200 billion in 2035, and the penetration rate of new energy and intelligent connected vehicles continues to rise, continuously driving demand for automotive-grade chips. A research report by Western Securities (6.160, 0.00, 0.00%) pointed out that the per-vehicle value of power semiconductors in smart electric vehicles continues to rise, and domestic substitution has broad space.

However, growth in complete vehicle sales does not equal a comprehensive increase in per-vehicle chip usage. Different vehicle models and different intelligent configurations correspond to significant differences in chip categories and usage. NXP also mainly attributed the growth of its automotive business to sales driven by processors and mixed-signal products. Coupled with the current situation that channel inventory is higher than the same period last year, the supply-demand divergence in the current automotive chip market is intensifying, and the final price trend of products depends on specific part numbers, certification thresholds, and the domestic substitution cycle.

Amid the supply-demand divergence, domestic chip manufacturers are accelerating their entry into the automotive supply chain, but the depth of substitution still needs long-term verification.

Beijing Junzheng's automotive-grade memory and analog chips have achieved mass production in the automotive field, and international top-tier Tier 1 suppliers such as Continental, Bosch, and Valeo are all its customers. The company's 2026 semi-annual report shows that automotive-grade products such as LIN, CAN, and GreenPHY continue to advance, and have supported some Tier 1 suppliers in completing solution implementation, with some customers starting procurement of GreenPHY products.

Goodix Technology (63.390, 1.28, 2.06%) automotive-grade touch and fingerprint chips have achieved large-scale installation in vehicles, with customers covering multiple automakers such as GM, Hyundai, Geely, Changan, Lynk & Co, and Chery. According to its 2025 annual report, automotive-grade touch chips have been supplied in batches, low-power Bluetooth products have entered the supply chains of more than ten vehicle models, and the new-generation Bluetooth chips have obtained project nominations from multiple OEMs and Tier 1 suppliers.

Neither company disclosed the specific revenue of its automotive-grade business or a breakdown of its customer list. From solution design, small-batch procurement, and vehicle model mass production to project designation, domestic chip products are at different stages of commercialization. Automotive-grade certification cycles, software and hardware adaptation capabilities, and long-term stable supply capabilities remain the core variables that determine how far domestic substitution can go.

As NXP's new quotations are gradually implemented, OEMs and Tier 1 suppliers will verify quotations, orders, and supply terms one by one for each individual part number, assessing the impact of this round of price adjustments on procurement costs and supply chain stability.