SMT chip prices have increased, what is going on?

01

Which ST Chips Are Hot?

Which Ones Are Rising in Price?

To identify the currently popular ST chips, we gathered market procurement/sales data and analyzed trending ST models across trading platforms. The findings indicate that demand remains concentrated on ST's general-purpose foundational MCUs for consumer, medical, and industrial applications.

For example:

Entry-level MCU STM32F103C8T6, a perennial top 10 model across all brands, currently ranks first in popularity. Its inventory slightly decreased in March.

High-performance MCU STM32F407ZET6 saw the fastest recent surge in demand. Its inventory dropped sharply in early March but rebounded slightly by month-end.

High-performance MCU STM32F405RGT6 also experienced rapid demand growth. Post-Chinese New Year, its inventory gradually declined but increased again in March.

These ST chips have regained popularity since the beginning of the year. Compared to other periods, their demand trajectories in 2024 show more pronounced growth during the same timeframe.

Regarding pricing, the current price hikes are also concentrated on high-volume general-purpose chips.

These chips share similar price trends: prices continued to decline in 2024 but at a slower rate. By December, quotes hit their lowest levels since 2023 before stabilizing. As of March 2025, prices have rebounded:

STM32F103C8T6: Rose from ~3.5 yuan in December to 4-5 yuan (+14%-43%).

STM32F407ZET6: Increased from ~10.5 yuan to 11-15 yuan (+5%-43%).

STM32F405RGT6: Climbed from ~10 yuan to 12-15 yuan (+20%-50%).

Notably, STM32F103ZET6 recently saw volatile pricing—a distributor reported losses after selling stock, only to see prices spike hours later.

Other models, including STM32F103RCT6, STM32F103RBT6, STM32F407VET6, STM32F407VGT6, STM32F405RGT6, STM32F030C8T6, and STM8S003F3P6TR, also exhibit unified trends of stabilizing or rebounding prices.

Chip salesperson Qiqi observed that ST prices began rising late last year, with sharper increases post-Chinese New Year. Salesperson Xiao Chen noted his company’s recent ST purchases (sensors, MCUs) faced 15% price hikes, adding, "The more mainstream ST MCUs are seeing the steepest rises."

This marks a subtle shift in ST’s spot market. As recently as late 2024, ST demand remained sluggish, with models like STM32F103C8T6, STM32F407VET6, and STM32F103RCT6 still in price inversion amid fierce competition.

While price inversion persists for some ST general-purpose chips, it has eased. Factors include batch procurement costs and inventory differences. ST-focused distributor Xin Ge claims prices no longer invert, but agents still report inversion, reflecting market divergence.

During this transitional phase, spot markets hold clear pricing advantages. For instance, a model sold at 4.5 yuan may cost agents 5 yuan (inverted) but traders 4 yuan (profitable), highlighting disparities in procurement costs and inventory pressures.

02

Why Are Prices Rising?

What’s the Real Demand?

Amid ST’s recent momentum, distributors widely view this as a price correction rather than a shortage-driven surge.

Key factors:

Reduced Price Declines & Lower Inventories:

ST chip prices plummeted from late 2022 through 2024, with persistent inversion and market saturation. However, 2024 saw stabilization, setting the stage for recovery.

A UBS February 2025 report (covering 118 global distributors) noted a 7% monthly drop in MCU inventories, suggesting "ST’s spot market cleared stocks, enabling price corrections."

Extended Lead Times:

Future Electronics’ March report highlighted lengthening lead times for ST MCUs, contributing to spot market volatility.

Yet, distributors report uneven acceptance of higher prices. While some quotes jumped 50%, actual demand remains questionable. A purchaser noted preferring lower quotes amid inconsistent pricing.

Salesperson Qiqi speculates distributors may be gaming the market: "Customers want old prices, but with no discounts, some hoard stock, gradually pushing up quotes." Her clients now only buy ST chips upon confirmed orders.

Distributor Sha Sha observes that despite inventory digestion, ST’s general MCU stock remains ample. Increased inquiries haven’t lifted acceptable prices, casting doubt on real demand.

Terminal order volumes may also disappoint. Multiple distributors report stagnant ST demand. Xiao Wang, an ST distributor, states: "Sales are mediocre. We’re holding inverted stock, unwilling to sell at losses. If demand truly rebounded, business would improve—but it’s still weak."

Domestic substitution further tempers ST’s upside. A solution provider noted most clients switched to local chips, leaving limited ST demand. With pin-to-pin alternatives now widespread, ST’s price hikes may remain muted.

03

Conclusion

SMT long-sluggish market shows tentative signs of revival, sparking optimism. However, even during downturns, SMT maintained baseline demand due to its liquidity and broad distributor participation. Market sensitivity amplifies minor fluctuations, warranting cautious observation.

Is SMT rebound a sustainable recovery or a fleeting surge? Share your views in the comments. We’ll continue monitoring SMT market