Global semiconductor prices are soaring—soaring—soaring! Texas Instruments sees price hikes of up to 85%, while Infineon and NXP will implement across-the-board price increases starting in April.
Since March 2026, the global semiconductor industry has been poised for a new round of price hikes. Major international chip design firms—Texas Instruments (TI), Infineon, and NXP—have successively issued price adjustment notices to their customers, announcing that they will increase the prices of selected products effective April 1. At the same time, the impact of these price increases has already rippled from upstream chip manufacturers all the way to end-consumer markets, with frequent announcements of price adjustments in sectors such as smartphones and cloud services. The entire industry chain is now facing a new round of cost pressures.
I. Major International Manufacturers Announce Collective Price Hikes in April
- Texas Instruments: Price Increases of Up to 85% on Certain Products
As the global leader in analog chips, Texas Instruments recently issued a letter to its downstream customers announcing price adjustments for certain components effective April 1, 2026. These price changes will apply to all orders and shipments. According to multiple sources across the supply chain, the price increases will range from approximately 15% to 85%, covering core products such as digital isolators, isolated driver ICs, and power-management ICs (PMICs), with the exact increase varying by device type and product family.
A research report by Huaxin Securities points out that this round of price hikes marks the near completion of the two-year-long price war and inventory-liquidation phase, with recovering demand in downstream industrial and automotive electronics sectors driving the industry into a recovery trajectory for profitability. Previously, Texas Instruments had already raised prices by 10% to 30% in segments such as industrial control and automotive electronics.
- Infineon: AI Demand Drives Up Prices for Power Chips
Infineon’s price increase notice issued in February of this year indicates that, due to the ongoing supply constraints for power switches and related chips as well as rising raw-material and infrastructure costs, the company will raise prices on these products effective April 1, 2026.
The notice explicitly states that the semiconductor market has seen a substantial surge in demand for certain Infineon products, primarily driven by the large-scale deployment of AI data centers, which has resulted in shortages of some power switches and related chips. To meet this growing demand, Infineon must make significant additional investments to expand its wafer fabrication capacity. Specifically, price increases for Infineon’s mainstream products are expected to range from 5% to 15%, while adjustments for certain high-end products may be even higher.
- NXP: Cost Pressures Drive Price Adjustments
NXP Semiconductors has also issued a price adjustment notice to its customers, citing sustained cost pressures in key areas such as raw materials, energy, labor, and logistics as the driving force behind the increase. According to reports, the revised list prices for its distributors will take effect on March 30.
Summary Table of Price Increases by the Three Major Manufacturers (Data Source: Semiconductor Device Application Network):
II. The Core Reasons for the Price Increase
According to a comprehensive analysis of views from multiple institutions and analysts, the rapid development of the AI industry has triggered an explosive surge in storage demand, directly squeezing the supply of consumer-grade products. Leading manufacturers have adopted a “shun low, pursue high” strategy: Samsung Electronics and SK Hynix, among others, are shifting more than 80% of their advanced-capacity production to high-margin HBM, resulting in a substantial reduction in mature-node capacity.
Secondly, there is a structural shortage of 8-inch wafer capacity. Global 8-inch fabs are reducing capacity, while demand for analog chips such as power-management ICs is surging in sectors like new-energy vehicles and industrial control. Leading mature-node foundries—including UMC, VIS, and Powerchip—are set to raise their pricing as early as April, with increases of up to 10% or more.
Finally, available data indicate that upstream raw-material costs have risen across the board. Prices for precious metals such as copper and gallium have continued to climb, while procurement costs for semiconductor equipment, as well as energy, labor, and transportation expenses, have also been steadily increasing.
III. Industry Outlook
According to reports, following the wave of price hikes, the share of memory semiconductors in the bill of materials for smartphones has risen from the previous 10% to 15% to over 20%, with memory costs accounting for more than 40% of the bill of materials in some mid- and low-end models. Sources indicate that smartphone manufacturers such as vivo, OPPO, and Honor have all announced on their official websites price increases for certain models already on the market.
IDC reports that the structural storage shortage driven by competition between AI infrastructure and consumer electronics for production capacity is expected to persist through 2026 and may extend into 2027. Although the pace of price increases may slow in the second half of the year, prices are unlikely to return to 2025 levels.
Huaxin Securities believes that, for domestic analog chip manufacturers, TI’s price hike presents a dual benefit: on the one hand, driven by the price-following effect, domestic players are likely to align their pricing, which should help margin recovery quarter by quarter; on the other hand, TI’s price increase enhances the cost-performance advantage of domestically produced chips, further widening the window for substituting TI’s industrial- and automotive-grade products.
From an industry-wide perspective, temporary downward pressure on consumer electronics sales is inevitable, and industry resources and pricing power are likely to become increasingly concentrated among leading brands that benefit from scale and supply-chain advantages. At the same time, as semiconductor prices rise across the board, not only smartphones and computers but also a wide range of other products—such as home appliances and automobiles—that rely heavily on semiconductors may face upward pricing pressure.
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