The global power semiconductor market is experiencing a new round of supply and demand fluctuations. Since the beginning of this year, leading companies such as Infineon, Texas Instruments, ON Semiconductor, and STMicroelectronics have announced price increases. Market analysts believe that due to the full utilization of mature process capacity in various regions, the tight capacity situation is likely to worsen in the second half of the year.
A report released by research firm TrendForce on May 7th shows that due to TSMC and Samsung's continued reduction in 8-inch mature process capacity, global 8-inch capacity will maintain negative growth until the first half of 2027; on the demand side, AI servers are continuing to drive strong demand for power management and power chips. Under the pressure of both supply and demand, power semiconductors are the starting point of this chain reaction: according to industry research, high-voltage MOSFETs, due to their larger die size and greater consumption of 8-inch wafer capacity, have become the first category to face shortages; IGBTs, on the other hand, are benefiting from the demand for electric control systems in new energy vehicles, with orders for automotive-grade modules continuing to climb.
The pressure from the cost side cannot be ignored: the prices of key metal materials required for semiconductor packaging continue to rise, coupled with rising global energy prices and increased compliance costs due to the low-carbon transition, significantly increasing the overall production cost of the industry chain and becoming an important basis for driving up product prices. A TrendForce report shows that in 2026, the average 8-inch wafer capacity utilization rate of the world's top ten wafer foundries has rebounded from approximately 80% in the previous year to nearly 90%, and these foundries have successfully relayed price increases to their customers.
Meanwhile, the Chinese market has also reacted quickly and followed suit. According to incomplete statistics, since the beginning of the year, nearly ten domestic companies have issued price increase notices, with AMEC (Advanced Micro-Fabrication Equipment Inc.) leading the way by announcing price increases of 15% to 50% for products such as MCUs; subsequently, in March and April, leading power semiconductor companies such as Silan Microelectronics, Jiejie Microelectronics, and Xinjieneng followed suit.
In addition, domestic and foreign manufacturers are also expanding production capacity. In early February, Infineon announced that it would increase its investment plan for fiscal year 2026 to €2.7 billion to expand its manufacturing capacity related to data center power supplies. This investment will focus on ramping up production at the Dresden smart power semiconductor factory, which is scheduled to begin operations in the summer of 2026.