The cost pressures reshaping the semiconductor industry are moving upstream, with major manufacturers of power chips announcing price increases that extend the AI-driven squeeze beyond graphics processing units and memory.
Makers of power semiconductors, including Germany’s Infineon, US-based Texas Instruments, and China’s Yangjie Technology, have raised prices, creating new bottlenecks in the supply chain that could slow production across multiple sectors.
The shift marks a widening of the supply crunch that has dominated the sector for months.
While earlier price surges were concentrated in high-end AI accelerators and memory modules, the current round of hikes targets the foundational components required for power management and industrial applications.
This broadening suggests that capacity constraints are becoming structural rather than cyclical, affecting a wider range of end markets including automotive, industrial automation, and consumer electronics.
The price increases come as the global semiconductor supply chain faces a structural bottleneck that is unlikely to ease before 2029.