by WU Xuguang, CHEN Junqing
A new round of price increases is sweeping through the semiconductor sector as rising metal costs and tighter supply push manufacturers to adjust pricing.
Since the start of the year, Chinese chipmakers including China Resources Microelectronics and Cmsemicon, along with global suppliers such as Infineon Technologies, Analog Devices and Vishay-Siliconix, have lifted prices on microcontrollers, NOR flash, packaged memory and power semiconductors. Increases generally range from 10% to as high as 80%.
Industry executives say the pressure stems primarily from higher prices for copper, silver and tin rather than silicon wafers.
"The main cost pressure is coming from metals," said an executive at a Chinese power semiconductor company, adding that polysilicon prices have remained relatively stable.
Copper has been a key driver. Prices have risen more than 40% since 2025, according to Shanghai Metals Market, after climbing 34.34% last year. Copper prices in China reached 101,600 yuan per tonne in late January, up 35.08% year on year. Citi expects international copper prices to test US,000 per tonne in the coming months, citing post-holiday restocking in China and supportive short-term dynamics.
The higher input costs are now feeding directly into chip pricing.
In early February, Infineon Technologies said it would raise prices on selected power switching devices and integrated circuits from April 1. Vishay-Siliconix said sustained increases in raw material costs meant it could no longer absorb the pressure internally and would adjust pricing for its MOSFET and IC product lines.
Chinese manufacturers have followed. China Resources Microelectronics, an integrated device manufacturer, said price adjustments reflect both rising material costs and relatively high capacity utilization after nearly two years of industry adjustment. The company began raising prices from Feb 1, with increases starting at 10%. A representative said future pricing will be reviewed quarterly based on raw material trends and utilization levels.
Hangzhou Silan Microelectronics said it would raise prices on certain device products by 10% from March 1, describing the move as structural rather than across-the-board. The company said cost pressures persist and trends in upstream pricing remain difficult to predict.
Lion Electronics said pricing for its MOS-related devices will track broader market movements, with final adjustments to be negotiated with customers. Maxic Technology said it would also raise prices in response to higher input costs but did not disclose details.
Beyond raw material costs, tighter supply is also driving price increases. On Jan 27, Cmsemicon announced price hikes of 15%-50% on its MCU and NOR flash products, citing tight supply and rising costs. Goke Microelectronics, another Chinese chip designer, said it would raise prices on some KGD-packaged memory products by up to 80%, citing higher costs and supply constraints. The company said capacity remains sufficient and demand has remained stable so far.
Analysts say price increases have been spreading across electronic components since late last year and could extend further as restocking strengthens and metal costs remain elevated. While inventories at major global chipmakers remain at historically high levels, product prices in several segments are recovering from cyclical lows, reflecting a broader upturn in the industry.
