China Power Chip Prices Rise 10%-15% as AI Demand Builds

A new round of power semiconductor price increases took effect in China on July 1, led by a 10% to 15% adjustment across Yangjie Technology’s product range. The move brings renewed attention to a chip category used throughout AI data centers, electric vehicles, renewable-energy systems and industrial equipment.

Securities Times and 21st Century Business Herald reported that the new Yangjie prices apply to shipments from July 1. The company linked the adjustment to increases in wafers, bulk metals and packaging materials that had pushed costs above expectations.

Yangjie’s 10%-15% Increase Is Now in Effect

The adjustment covers Yangjie’s full product range, according to the reports. That makes the action broader than a price change limited to one voltage class or device family, although actual customer impact can still vary by contract, order timing and product mix.

Yicai separately reported that Infineon planned to adjust prices for selected products from July 1. It also said several Chinese suppliers, including companies active in MOSFETs, IGBTs and other power devices, had started or were preparing another round of repricing.

Why Power Chips Matter to the AI Buildout

Power semiconductors do not perform the model training or inference that attracts most AI-chip headlines. They control the electricity feeding processors, servers, cooling equipment and power-conversion systems. Higher-density computing therefore increases demand not only for accelerators, but also for the components that move and regulate power safely and efficiently.

The same device families are important in vehicle inverters, charging systems, solar and wind equipment, factory drives and consumer electronics. This wide exposure means pricing can reflect several demand cycles at once rather than AI infrastructure alone.

Cost Pressure and Demand Are Moving Together

The cited reports describe a combination of upstream cost increases and stronger demand. Wafers, packaging inputs and metals affect manufacturing costs, while AI infrastructure and electrification increase requirements for higher-performance power management.

However, a supplier price notice is not proof that every segment faces a structural shortage. Inventories, lead times and utilization rates differ by device, voltage, process and end market. Buyers may also negotiate different terms under long-term agreements.

Where the Price Changes Could Flow Next

System makers with short procurement cycles are more exposed to immediate changes than customers protected by annual contracts. Automotive and industrial buyers also require lengthy qualification, which can make it harder to switch an approved power device quickly even when another supplier offers a lower price.

That does not mean finished equipment prices will automatically rise by the same percentage. Power chips are only one part of a system’s bill of materials, and manufacturers can respond through inventory, sourcing, design changes or lower margins.

What Buyers and Suppliers Should Watch Next

The clearest confirmation will come from second-half order volumes, delivery times and company margins. If price increases hold while utilization rises, the industry may be entering a broader recovery. If orders remain uneven, the changes could mainly offset higher input costs.

For China-based suppliers, the opportunity is largest where customers need reliable local capacity, application engineering and qualification support. For equipment makers, the immediate issue is whether higher device prices flow into system costs or can be absorbed through redesign and procurement.

This report describes industry pricing and is not investment advice. More coverage is available in CII’s China semiconductor archive.

Sources

• Yicai — Power semiconductor makers begin a new round of price adjustments
• Securities Times — Yangjie Technology raises all product prices by 10%-15% from July 1
• Securities Times — Power semiconductor makers reprice products as the sector rallies
• 21st Century Business Herald — July price increases and the power semiconductor cycle