AI chip demand drives up prices for power semiconductors and components
The rise in semiconductor prices, fueled by AI demand, is now impacting not just GPUs and memory chips but also the materials and manufacturing inputs needed for production. Companies like Infineon from Germany, Texas Instruments in the U.S., and Yangjie Technology in China have all raised their prices. Additionally, suppliers of smaller components—like power chips, capacitors, and ceramic parts—are gaining leverage as demand exceeds supply. Analyst Liu Gaochang from Sinolink Securities noted that the trend of increasing prices for capacitors and power semiconductors is expanding. Moreover, Japan's Murata Manufacturing intends to hike prices for its AI server and high-end automotive products by 10 to 40 percent starting in July, as reported by Shanghai Securities News.
Key facts
- AI-driven price surge spreads beyond GPUs and memory chips to upstream materials.
- Power semiconductor makers Infineon, Texas Instruments, and Yangjie Technology have raised prices.
- Suppliers of power chips, capacitors, copper-clad laminates, glass fabric, industrial gases, valves, and ceramic parts gain leverage.
- Liu Gaochang of Sinolink Securities says capacitors and power semiconductors are in a price-increase cycle.
- AI servers use 3 to 10 times more capacitors than traditional servers.
- Costs for aluminium foil, chemical materials, and electricity have risen.
- Murata Manufacturing will raise MLCC prices by 10 to 40 percent from July for AI server and automotive electronics products.
- New bottlenecks could slow global AI infrastructure buildout.
Entities
Institutions
- Infineon
- Texas Instruments
- Yangjie Technology
- Sinolink Securities
- Murata Manufacturing
- Shanghai Securities News
Locations
- Germany
- United States
- China
- Japan