Price Increase Cycle Begins, Semiconductor Industry Enters New Stage Of Rising Volume And Value

The global semiconductor sector has entered a new round of price increases. Following the sustained rise in memory chip prices, analog chips, power devices, and wafer foundry services have all announced adjustments, with multiple manufacturers issuing notices that confirm the upward trend.

Analysts highlight that with downstream demand recovering, inventories clearing, and supply structures improving, industry momentum is expected to continue rising. As price transmission effects become more evident, profitability across the supply chain is expanding, marking a transition from a destocking cycle to a new phase of simultaneous growth in both volume and value, where structural investment opportunities are emerging.

Clear Pricing Drivers  
On the demand side, surging AI computing requirements are the primary catalyst, with strong demand from AI servers, smart terminals, and industrial control systems. Geopolitical tensions have further increased supply‑chain uncertainty, prompting downstream firms to stockpile more aggressively, which has boosted chip demand.

On the supply side, after nearly two years of destocking, global semiconductor inventories have returned to reasonable levels. Data from the National Bureau of Statistics show that in January–February 2026, profits of large high‑tech manufacturers rose 58.7% year‑on‑year, with semiconductor discrete device manufacturing profits up 130.5%, reflecting the combined effect of inventory clearance and demand recovery. Meanwhile, international leaders have slowed capacity expansion, leaving supply in tight balance.

China’s semiconductor industry continues to receive strong policy support. The 15th Five‑Year Plan calls for advancing innovation across the entire industrial chain, developing high‑end and scarce products, and accelerating breakthroughs in key components and materials. Local governments such as Xiamen and Shanghai have also introduced supportive policies covering R&D, tape‑out, and industrialization.

Domestic Market Adjustments  
The global price‑increase wave has spread across the semiconductor chain, covering analog chips, power semiconductors, and microcontrollers. Texas Instruments, NXP, and Infineon recently notified customers of price increases effective April 1, with some Texas Instruments products rising up to 85% and Infineon’s mainstream products increasing 5–15%.

China’s domestic market is responding in parallel. Wafer foundry leader Crystal Integrated announced in mid‑March that all wafer‑foundry products will rise 10% from June 1. Several A‑share chip design firms have also issued price‑increase letters. Jiejie Microelectronics raised MOSFET prices by 10–20%, while Chipsea Technologies, SGMicro, and Naxin Micro announced similar adjustments, generally in the 10–20% range.

Structural Opportunities Emerging  
Brokerage analysts believe the semiconductor industry’s prosperity will continue to climb, with structural investment opportunities becoming clear. Zhang Xia, Chief Strategy Analyst at China Merchants Securities, said this round of increases is not a simple cyclical fluctuation but a structural transformation driven by explosive AI growth and rising upstream material costs. Xu Tao, Co‑Chief of Technology Industry at CITIC Securities, expects domestic leading wafer fabs to keep expanding, accelerating advanced process line construction and creating significant market space for domestic semiconductor equipment and materials.

Chen Rongfang, Chief Electronics Analyst at Kaiyuan Securities, explained that rising wafer and packaging material costs, combined with global energy price volatility, are forcing mature foundries and packaging firms to pass costs downstream. At the same time, shrinking 8‑inch mature process capacity at leading foundries, driven by their pursuit of higher margins, has tightened supply, while demand from AI data centers and servers has surged. This imbalance has created structural shortages in analog chips.

Fan Zhiyuan, Chief Electronics Analyst at Guojin Securities, noted that AI core computing hardware, memory chips and modules, copper‑clad laminates, electronic fabrics, and passive components are all showing clear upward trends. He expects memory price increases to drive memory chip and module companies to outperform in the first quarter, while semiconductor materials firms should benefit from higher wafer utilization and memory expansion.

Industry experts emphasize that this round of semiconductor price increases is not uniform across the sector but highly structural. On the demand side, AI infrastructure and smart electric vehicles are the dual growth engines. On the supply side, foundries are deliberately shrinking mature process capacity and shifting to higher‑margin products, intensifying mismatches in specific categories. Against this backdrop, segments with strong technological barriers, deep integration into AI and automotive supply chains, and clear benefits from rising domestic substitution rates are expected to achieve greater earnings flexibility and valuation premiums in this cycle.