Chinese power semiconductor firms raise product prices amid rising costs and AI-driven demand surge

Several leading Chinese power semiconductor manufacturers have announced official price adjustments for their products, responding to sustained cost inflation and robust market demand growth across the industrial chain.

According to Securities Daily, Silan Microelectronics, Lianxin Integrated Circuit Manufacturing and Yangjie Electronic Technology have rolled out formal price increase notices recently, following multiple listed domestic semiconductor enterprises that completed price adjustments in the first half of 2026.

Industry analysis confirms that the current round of price rises stems from dual driving forces of climbing manufacturing costs and explosive downstream demand. Global semiconductor production chains have faced continuous structural cost increases throughout 2026, with wafer substrates, bulk metals and packaging materials maintaining an upward price trend. Downstream application expansion in artificial intelligence and new energy sectors has further tightened overall industrial capacity supply.

Lianxin Integrated Circuit Manufacturing has confirmed a product price adjustment ranging from 15 per cent to 25 per cent for the third quarter of 2026. The adjustment is designed to stabilise product quality and secure continuous supply amid widespread industrial cost pressures and capacity shortages.

Yangjie Electronic Technology implemented a full product price increase of 10 per cent to 15 per cent from July 1, 2026. The company has adopted comprehensive cost reduction measures during the first half of the year to absorb rising operational expenses and stabilise client pricing. New material cost surges emerging in the second half of the year have exceeded operational adjustment margins, prompting the formal price revision to sustain stable product quality and reliable supply delivery. The firm maintains full-capacity production with high equipment utilisation rates, while robust order inflows have moderately extended product delivery cycles.

Silan Microelectronics has launched a price uplift of over 15 per cent for all product lines, taking effect on July 1, 2026. Hongwei Technology and Hilink Microelectronics completed similar price optimisation arrangements earlier in 2026, forming a consistent industrial pricing adjustment trend.

Power semiconductors serve as core components of modern power electronic systems, undertaking critical power conversion and control functions for AI data centres, automotive electronics and industrial control equipment. Upgraded power demands from high-performance AI servers are driving the industry shift towards high-voltage power supply architectures, creating substantial supply gaps for advanced power semiconductor products with high-frequency and high-power operational capabilities. Market demand for high-end power semiconductor devices will continue to expand alongside the iterative upgrading of digital and intelligent manufacturing infrastructure.

Domestic power semiconductor enterprises are accelerating technological iteration and product structure optimisation to capture high-end market opportunities. Silan Microelectronics has built a comprehensive research and development system and diversified product portfolio through long-term industrial layout, focusing on the research, development and mass production scaling of 12-inch analogue process platforms for automotive-grade circuits and server power management chips. Yangjie Electronic Technology is advancing technological transformation projects for small-signal power semiconductor production lines to deliver high-reliability devices tailored for AI infrastructure applications.

Structured market demand from AI data centres and automotive electronic sectors will continue to underpin the premium pricing of high-end power semiconductor products. Domestic manufacturers will further expand high-value market segments and enhance comprehensive industrial competitiveness amid the ongoing industrial prosperity cycle.