Starting in January 2026, semiconductor price increases accelerated far beyond memory and GPUs, encompassing power semiconductors, analog chips, MCUs, CIS image sensors, and discrete components. Cmsemicon led the wave with MCU and NOR Flash increases of 15–50%; Goke Microelectronics followed with KGD memory hikes of 40–80%. By March, Silan Microelectronics, Infineon, SmartSens, and others issued broad price increases across their product lines, with most leveling at 10–20% but some automotive-grade components reaching 80%.
The driver is dual: on the cost side, upstream raw materials have inflated sharply—copper prices up 35% YoY, with copper and precious metals now comprising 60–80% of packaging costs for mature devices. Foundry and OSAT (packaging/test) costs rose 5–20%, with TSMC, Samsung, and SMIC all raising prices. On the demand side, AI data center construction has shifted power semiconductor demand structurally upward; AI servers consume tens of kilowatts versus traditional servers' few kilowatts. New energy vehicle (EV) and industrial control sectors also drive sustained high demand, with delivery lead times extending to 40–70 weeks.
For architects selecting components, this is a structural reset, not a cyclical spike. Raw material constraints, foundry capacity allocation toward AI, and multi-year hyperscaler commitments mean component costs will remain elevated through at least 2027. Passive components (capacitors, inductors) face 15–30% increases due to AI server power-regulation demands. Any new build or refresh project should lock in BOM now; waiting for a price correction is unlikely to pay back via savings.