Zheng Quan Ri Bao·2026-02-27 16:22Core Viewpoint - The power semiconductor industry is experiencing a new wave of price increases driven by rising cost pressures and structural demand from AI applications [1][2] Group 1: Price Increases - Wuxi Xinjieneng announced a price increase of at least 10% for MOSFET products effective from March 1, following similar announcements from major companies like Infineon and Silan Microelectronics, with price hikes generally ranging from 10% to 20% [1] - The price surge is attributed to significant increases in the prices of raw materials and key precious metals, which have raised wafer processing and packaging costs [1][2] Group 2: Cost Structure and Demand - The cost of core materials such as copper, aluminum, palladium, and silver has risen significantly since 2025, with packaging costs accounting for over 50% of production costs in mid-power devices, and in some cases, reaching 70% to 80% [2] - The demand for power semiconductors is expected to remain strong due to the ongoing AI infrastructure investment, with AI server power requirements increasing dramatically [2][3] Group 3: Industry Dynamics - The current price increase is expected to last throughout 2026 and possibly beyond, as the tight supply-demand balance for precious metals is unlikely to reverse in the short term [2] - The structural differentiation within the industry will intensify, benefiting upstream material and equipment suppliers while putting pressure on smaller midstream design and manufacturing companies [3] Group 4: Third-Generation Semiconductors - The price increases are likely to accelerate the penetration of third-generation semiconductors like SiC and GaN, as the cost gap narrows between silicon-based devices and SiC due to scale production [4] - Companies like Silan Microelectronics and Huazhong Microelectronics are advancing in the third-generation semiconductor space, with Silan aiming for significant production capacity in SiC devices by 2025 [4][5]