Summary of Key Points
Recently, the power semiconductor industry has witnessed a widespread wave of price increases, with more than twenty companies both domestically and internationally (including leaders such as CR Microelectronics and Infineon) raising prices collectively. Some companies have even implemented a second round of price hikes, with increases ranging generally between 10% and 25%. The root causes of the price increase lie in the rising costs across the entire supply chain (sharp increases in wafer manufacturing and packaging/test fees) and the surge in demand (doubling demand for power chips in fields such as AI and new energy), leading to a mismatch between supply and demand. Currently, the chip delivery cycle has lengthened (up to over a year at its longest), inventory levels are critically low, and the price increase has spread throughout the entire semiconductor industry chain (from upstream materials to end-use devices). The industry expects price increases to continue in the second half of the year and may even extend into the following years.
Detailed Analysis
1. Who is raising prices? Leading companies from both domestic and international markets are involved, with some having already raised prices twice
Power semiconductor companies, whether domestic or foreign, have recently been adjusting their pricing:
- International leaders: Infineon raised prices once at the beginning of the year and then issued another notice for a second price hike at the end of May (effective July 1st), with increases ranging from 10% to 20%, affecting AI power chips and automotive-grade chips; Texas Instruments also implemented a second price hike, with new prices taking effect in July 2026.
- Domestic companies: CR Microelectronics announced a 15% increase across all its product categories on July 1st; Xinlian Integration plans to raise prices in the third quarter; leading companies such as Yangjie Technology and Silan Micro have also followed suit, with increases ranging from 10% to 25%.
More than twenty companies have now joined the list of price raisers, covering almost all major players in the industry.
2. Why are prices rising? Rising costs + surging demand, leading to a severe imbalance between supply and demand
The price increases are not arbitrary decisions by companies but are forced by market forces:
- Uncontrollable cost pressures: Costs associated with chip manufacturing (wafer production, packaging, and testing) are increasing significantly, squeezing company profits.
- Insatiable demand: The power requirements for AI servers have increased dramatically (from tens of kilowatts to 600kW or even 1 megawatt per rack), and the number of power chips needed per GPU and per rack (such as MOSFETs for current control and SiC for new energy applications) has multiplied. The power conversion requirements for electric vehicles have also increased, resulting in a supply shortage and high risks of material shortages.
3. Market situation: Shortages and long waiting times
How difficult is it to purchase power chips now?
- Lengthened waiting times: The delivery cycle for low-voltage MOSFETs (a common type of power chip) has increased from 12-40 weeks last quarter to 12-52 weeks, with the longest wait periods exceeding a year.
- Low inventory levels: Both manufacturers and distributors have limited stock. Companies at the Shanghai Munich Electronics Show generally reported tight supply, and a staff member from Xinjieneng directly stated, “MOSFETs are in short supply, and prices are likely to continue to rise.”
4. It’s not just power chips; the entire semiconductor industry chain is affected
The price increase is not limited to power chips; it affects the entire semiconductor industry chain:
- Upstream materials: Prices for electronic fabrics (e.g., those with low dielectric constants used in AI servers), copper-clad laminates, and high-purity tungsten have risen.
- Manufacturing processes: Rising costs for wafer fabrication and packaging/test are being passed on to downstream companies.
- End-use devices: MLCCs (multilayer ceramic capacitors) have seen price increases in the past three months, with the most significant rises in the last month, with many product prices doubling or more. Manufacturers predict that this trend may continue into the following years.
5. Future trends: Price increases are likely to continue, and the cycle may lengthen
The industry's consensus on the future is clear:
- Company perspectives: Many manufacturers indicate that prices may continue to rise in the second half of the year, with MLCC manufacturers predicting price increases extending into the following years.
- Institutional views: Xingye Research believes that the imbalance between upstream costs and midstream production capacity will not be resolved, leading to further price increases. SIA data shows that global semiconductor sales increased by 70.5% year-on-year from January to April 2026, indicating that demand remains high and the trend of rising prices is unlikely to reverse.
In summary, this price increase is not a short-term phenomenon but the result of combined factors affecting both costs and demand. Ordinary consumers may indirectly be affected by these price increases, as chip costs will ultimately be reflected in the prices of electronic products and electric vehicles.