Optimizing Pricing Intelligence for Active Semiconductor Components

Client Background 

The client is a major multinational technology company with a strong presence in industrial automation and aerospace systems, as well as a significant foothold in the global semiconductor industry. Supplying advanced technologies to sectors such as automotive, aerospace, and consumer electronics, the company plays a vital role in enabling next-generation electronic and industrial applications.

Client's Challenge 

The client faced challenges with an outdated internal pricing model for semiconductor components, which limited visibility into market movements and weakened its position during supplier negotiations.  

To improve procurement cost efficiency and maintain competitiveness, the client required a comprehensive, real-time pricing intelligence framework that could support sourcing decisions across key verticals including automotive, aerospace, consumer electronics, and industrial systems.  

Mordor Intelligence was commissioned to deliver a detailed pricing intelligence solution that would track market dynamics, benchmark pricing across suppliers, and enhance the client’s overall sourcing strategy. 

How Mordor Intelligence Helped

Mordor Intelligence employed a multi-faceted research approach to provide the client with actionable, real-time pricing intelligence: 

• Comprehensive Data Collection: Developed a framework to track pricing across semiconductor manufacturers, authorized distributors, and system integrators, monitoring both spot market dynamics and long-term contract pricing. 

• Segment-Specific Analysis: Focused on pricing variations across critical industries, including automotive, consumer electronics, aerospace, and industrial applications. 

• Quarterly Updates: Implemented a quarterly update cycle to maintain data relevance and adjust for market volatility. 

• Cross-Validation: Ensured data accuracy by cross-referencing with industry benchmarks and conducting regular data reconciliation. 

• Custom Dashboards: Delivered a detailed pricing intelligence dashboard with component-level granularity and custom filters for industry-specific pricing. 

• Trend Analysis Reports: Provided quarterly reports that highlighted pricing movements and market dynamics. 

Key Findings 

• Pricing Trends: Mass-market components like diodes and transistors showed cost optimization through advanced manufacturing, while specialized components in emerging fields like e-mobility and next-gen communications retained premium pricing. 

• Key Manufacturers: Industry leaders such as Infineon, ON Semiconductor, and Nexperia were reshaping supply chain dynamics through strategic capacity allocation. 

• Technology Advancements: VCSEL technology and premium OLED components saw pricing rationalization due to manufacturing improvements. 

• Sector-specific Pricing: Components used in AI-centric applications, such as LiDAR and advanced imaging, maintained value-based pricing due to application sophistication. 
  

Impact Created 

• Enhanced Negotiation Power: The client’s ability to negotiate with suppliers improved significantly with accurate, up-to-date pricing intelligence.

• Cost Optimization: Optimized procurement costs through better-informed sourcing decisions, strengthening the client’s competitive standing.

• Strategic Sourcing: The pricing intelligence became integral to the client’s sourcing strategy, empowering both short-term procurement decisions and long-term planning.

• Ongoing Partnership: The client signed a long-term engagement with Mordor Intelligence to receive ongoing updates, utilizing the intelligence for strategic planning and sourcing decisions.  

Our Industry Coverage

Mordor Intelligence has extensive experience in semiconductor and electronics components, offering customized research services that meet the unique needs of our clients. Below are some of the services we provide: 

• Market Entry Strategy/International Expansion: Helping clients navigate entry into new markets and expand their global footprint through competitive intelligence and tailored market entry strategies. 

• Opportunity Assessment: Identifying high-growth opportunities and emerging trends in the semiconductor and electronics industry. 

• Competitor Assessment: Analyzing competitive landscapes and tracking key competitors' strategies to maintain a competitive edge. 

• Technology Scouting: Monitoring advancements in semiconductor technologies and identifying new tech innovations to guide clients’ future product development strategies. 

• Pricing and Import/Export Intelligence: Providing insights into pricing trends and international trade dynamics to help clients optimize their procurement strategies.

With proven expertise in semiconductor market intelligence, Mordor Intelligence helps technology leaders optimize sourcing strategies, strengthen negotiation power, and make data-driven decisions in a rapidly evolving global electronics landscape.