Taiwan Power Chip Makers Raise Prices Up to 20%

The semiconductor industry is facing one of the strongest inflation cycles in its history. While advanced process nodes continue to become more expensive, prices for mature processes—after nearly three years of correction—are also stabilizing and starting to rise again. The latest price pressure is now moving upstream into the power semiconductor segment. Companies such as China Resources Microelectronics have already started adjusting prices, while manufacturers in Taiwan including PANJIT, Taiwan Semiconductor Company Limited, and Eris Technology are discussing price increases with customers, with some products reportedly seeing potential hikes of up to 20%.

Industry sources say the inventory correction cycle in the power device sector has largely ended. Customer inventories have fallen to relatively low levels, while renewed demand from automotive manufacturers is pushing orders higher. At the same time, geopolitical tensions between the United States and Iran have added uncertainty to global shipping and logistics, prompting automakers to secure supply more aggressively.

This shift in demand is also reshaping the competitive landscape. As supply disruptions affect certain major players, manufacturers in Taiwan—including PANJIT, Taiwan Semiconductor Company Limited, and Eris Technology—are seeing opportunities to expand their market presence. With customers actively diversifying sourcing strategies, these companies are gaining additional order volumes in areas previously dominated by other global brands.

Meanwhile, challenges within Nexperia have further intensified the market shift. Internal operational issues recently escalated after its mainland China subsidiary reportedly lost access to internal systems from the Dutch headquarters, temporarily disrupting parts of its production workflow. Although the company quickly announced plans to rely on its own 12-inch wafer manufacturing capability, concerns over supply stability—particularly among automotive customers—have increased.

Automotive electronics present unique challenges because components must pass strict qualification and validation processes. Industry analysts note that if automotive-grade devices need to be requalified, the process can take roughly 18 to 24 months. As a result, even if production changes are implemented quickly, it will take time before supply can fully return to previous levels.

Because of this gap, alternative manufacturers are likely to benefit in the short term. Companies such as PANJIT, Taiwan Semiconductor Company Limited, Eris Technology, and Amazing Microelectronic Corp. are expected to capture additional demand, particularly in automotive and power management applications.

Market observers previously believed that the order shift would last only through the first quarter of the year. However, with operational uncertainties, geopolitical tensions, and rising automotive demand occurring simultaneously, the trend may persist longer than expected—providing a meaningful boost to the performance of several power semiconductor manufacturers this year.

Cost pressures are also playing a major role in the current pricing adjustments. Over the past three years, electricity prices, labor expenses, precious metals, specialty gases, and chemical materials have all increased significantly. To offset these rising costs, multiple manufacturers have entered negotiations with customers, with reported price adjustments ranging between 5% and 20%.