The global semiconductor industry has entered its second major wave of price adjustments this year, with numerous analog and power semiconductor manufacturers initiating price hikes starting in July. Both domestic and international chip companies have issued price increase notices to their customers.

Corelink Integration issued a notice on June 30th, announcing price increases of 15% to 25% for its products in the third quarter of 2026, marking its second price hike this year. Yangjie Technology raised prices for its entire product series by 10% to 15% effective July 1st. Giantec Semiconductor increased prices for its full line of Nor Flash products by a uniform 25%, with the new pricing taking effect on July 6th. StarPower Semiconductor raised prices for its power semiconductor modules and discrete devices, including IGBT and SiC MOSFET products, starting at 15%.

Simultaneously, major overseas manufacturers like Infineon, Texas Instruments, and STMicroelectronics have also commenced their second round of price increases. For instance, Infineon has raised prices by 10% to 20% for products such as AI server power chips and automotive-grade IGBTs.

Key Drivers of the Price Adjustments

Analysis indicates that rising costs and surging AI demand are the two primary drivers behind these adjustments. Data shows significant price increases for precious metals used in packaging, such as copper, tin, and palladium, since the beginning of the year. Prices for materials like silicon wafers, electronic special gases, and sputtering targets have also risen.

On the demand side, AI computing power and new energy vehicles are fueling sustained, high growth in the power semiconductor market. Public information indicates that the power semiconductor usage in a single AI server is more than three times that of a traditional server, with some high-end models reaching over five times.

Industry Outlook and Implications

Industry insiders anticipate that the chip market is transitioning from structured price increases to a phase of broad-based price hikes. The capacity tightness at mainstream wafer fabs is expected to intensify further in the second half of the year.

For the domestic chip industry in China, this wave of price increases presents both a challenge due to cost pressures and a strategic opportunity period driven by the explosive growth in AI demand.