Chinese Power Chip Makers Collectively Raise Prices as AI Servers Squeeze Mature Process Capacity
0xBroomberg
Nearly 20 power-semiconductor companies have announced 10%–25% price hikes from July. AI servers consume three to five times the power of conventional ones, pushing mature-node fabs to their limits and sending cost pressures rippling through the supply chain.
Silan raises prices 15% across the board — what does that signal?
Hangzhou Silan Microelectronics (士兰微) will raise all product prices by at least 15% from July 1, 2026, covering MOSFETs, IGBTs, silicon-carbide power devices, MEMS sensors, LEDs, and analog ICs.
Silan is an IDM — an integrated device manufacturer that controls chip design, wafer fabrication, packaging, and testing in-house. This means → even a large maker with full control of its production chain can no longer absorb rising costs internally. Pure-design houses face even steeper pressure.
In plain terms = if a company that runs its own fabs still has to raise prices, the problem is industry-wide, not company-specific.
Why are price hikes erupting all at once?
AI servers draw three to five times the power of conventional servers, sharply boosting demand for power-management ICs and power devices. Silan says AI-related power orders are fully booked and cannot be delivered on time.
Yangjie Technology (扬杰科技) has already completed its second price increase this year, in the range of 10%–15%. CR Micro, Xinjielong, Jiejie Microelectronics, and Li'ang Micro have all signaled hikes. Globally, nearly 20 analog and power-semiconductor firms have announced July price increases; Infineon, STMicroelectronics, and Texas Instruments have each raised prices multiple times.
This reflects a structural shift: AI servers, EVs, energy storage, and high-end industrial systems are all competing for 8-inch and 12-inch mature-node capacity at the same time.
How tight is capacity, exactly?
Hua Hong Semiconductor's GalaxyCore operation ran at an average utilization rate of 106.1% in 2025 — above 100% means production lines are already running beyond rated capacity.
Its Fab 9 line is expected to complete capacity buildout in Q3 2026 and reach full load shortly after.
In plain terms = there is no spare machine time left. New orders either queue or pay a premium to get in.
How did costs ratchet up wave by wave?
Wave one (early 2025): packaging-material costs rose, driven mainly by higher gold and copper prices.
Wave two: wafer-fabrication costs climbed as specialty-gas supplies tightened, lifting front-end manufacturing expenses.
Wave three (mid-year): AI-driven power-device and materials demand strengthened further, with cost pressure and demand pressure hitting simultaneously. Suppliers are passing costs through in stages to avoid shocking downstream customers all at once.
Which buyers can absorb the hikes — and which cannot?
AI power supplies, EVs, energy storage, and high-end industrial equipment buyers have lower price sensitivity. Supply security matters more to them than a modest cost increase.
Consumer electronics, white goods, and general-purpose motor-drive buyers are more likely to defer orders, cut volumes, or switch suppliers.
Silan noted that industrial and automotive demand outside AI has shown no clear pickup, and the recovery remains uneven. This means → the current round is not a broad cyclical upturn but a structural squeeze driven by a single demand vector — AI.
Will silicon carbide follow the price hikes?
Chinese silicon-carbide (SiC) power-device prices have not risen meaningfully yet, but the decline has stopped and the market is stabilizing. Intense competition among Chinese downstream buyers still suppresses supplier pricing power.
Upstream signals diverge: conductive and semi-insulating SiC substrates have already risen more than 50% year-on-year. Infineon says SiC device demand is accelerating, with high-end SiC modules, automotive-grade products, and high-voltage modules up more than 15%.
In plain terms = SiC raw materials are already repricing higher, but finished devices have not caught up. How long that gap holds is the key test for whether this power-semiconductor upcycle extends into the second half.
Content is for reference only, not financial advice.