Summary of Key Points
Approximately 20 chip manufacturers, both domestic and international (including leading companies such as Infineon and Texas Instruments), have recently raised prices collectively. The main products affected are power semiconductors. There are two primary reasons for this increase: rising costs of raw materials and a surge in demand from AI data centers (especially driven by NVIDIA's new chips, which have led to an increased need for circuit modifications). Downstream customers, concerned about shortages, have been overstocking, exacerbating the supply-demand imbalance, with some products having delivery times extending up to one year. The industry is entering an upward cycle, as manufacturers shift their resources towards AI-related chips. The expansion of traditional power device production is slow, so price increases are likely to continue. Although the automotive sector remains the largest market for power semiconductors, industrial demand is also growing rapidly.
Detailed Analysis
1. Why the Collective Price Hikes?
The price increase is not the action of a single company but a coordinated move by 20 manufacturers, with power semiconductors being the main focus. An executive from Infineon (the world's largest power chip manufacturer) directly stated that the primary reason is the rise in costs, such as higher prices for raw materials. However, the more critical factor is the sudden surge in demand from AI data centers, which has further strained the chip supply. In simple terms, the cost of producing chips has increased, while the number of buyers has also risen, leading to price increases.
2. AI Data Centers: A Power-Hungry Market
AI servers consume a lot of power (for example, when training large models, servers operate continuously for 24 hours) and cannot afford to fail (as any downtime would result in significant losses). The role of power semiconductors is to manage power efficiently—ensuring stable power supply while reducing energy consumption and costs. NVIDIA's new Blackwell chips require even more power, leading many data centers to modify their circuits and thus creating a massive demand for new power chips. Infineon expects that revenue from AI-related activities could reach 2.5 billion euros (about 19 billion yuan) by 2027, highlighting the strength of this market.
3. Panicked Downstream Customers
Faced with shortages and rising prices, downstream companies (such as server manufacturers and automakers) have resorted to overstocking. They buy more than they need, fearing future price increases or shortages. This has led to even tighter supply-demand situations, with some products having delivery times extended from a few months to around one year. It's similar to the situation during the mask shortage: everyone is competing for supplies, making it harder to obtain products and driving up prices.
4. The Industry Entering an Upward Cycle
A report from Morgan Stanley indicates that the power semiconductor industry has entered a new upward phase, with prices expected to continue rising. There are several reasons for this: inventory levels are low, so manufacturers are not worried about unsold goods; investment is shifting towards AI-related chips; and the expansion of traditional power devices (such as IGBTs and MOSFETs) is slowing down, limiting new capacity in the next three years. As supply falls short of demand, price increases are likely to persist.
5. Automotive and Industrial Markets: Still Important
Although AI is the current focus, the automotive sector remains the largest consumer of power semiconductors (accounting for over 40% in 2025). Automakers are highly sensitive to price changes, as chip costs directly affect vehicle prices and delivery times. Large automakers are signing long-term contracts with suppliers to secure production capacity or even investing in chip manufacturing themselves. Smaller automakers are working together with suppliers to negotiate better prices. Additionally, industrial robots and automation equipment are also using a large number of power chips, becoming new drivers of demand.
Conclusion
The current price increase in power semiconductors is driven by both rising costs and increased demand, with AI being the primary catalyst. The overstocking behavior of downstream customers has exacerbated the situation, and prices are likely to continue to rise as the industry enters an upward cycle. Traditional markets like automotive and industrial applications are also supporting this demand. Although individuals may not feel the immediate impact, any increase in costs for products such as cars and servers will eventually be reflected in consumer prices.