Global PMIC Manufacturing Costs are Increasing as AI Infrastructure and Electric Vehicles Demand Exceeds Foundry Capacity Leading to Significant Semiconductor Price Hikes Through 2026
The costs of global PMIC manufacturing are increasing because the rising need for AI and electric vehicles is exceeding the capacity of existing production facilities. Power Management Integrated Circuits (PMICs) will experience price increases in 2026 because AI infrastructure and the automotive industry require extensive power resources. The global foundries are increasing their prices because their 8 inch and 12 inch legacy nodes operate at maximum capacity while their basic material costs continue to rise. The price changes from this shift are affecting all product categories which range from industrial machinery to consumer electronics.
Specialized foundries that operate mature processes have announced their upcoming price increases which will take effect during the second quarter. The market conditions show that power semiconductor demand exceeds production capacity since the current situation involves adjusted schedules.
UMC, VIS, and PSMC These foundries are moving toward a 10% price increase across their mature process lines. The company VIS made price changes between 4% and 10% which took effect in April 2026.
Nexchip The Chinese foundry has officially raised prices by 10% on all wafers as of June.
Texas Instruments (TI) The company TI has increased prices for specific PMICs and digital isolators by as much as 85%.
Infineon The German manufacturer will increase prices for power switch products and their associated components by 5% to 15%.
The current supply shortage results from the semiconductor industry which has taken separate paths for its technological development. TSMC and Samsung Electronics have invested billions which they dedicated to developing advanced 3nm and 5nm nodes required for AI processors and high bandwidth memory but power management legacy nodes have received no investment since then.
Data centers that run AI operations need high capacity power supplies which these mature process semiconductors deliver. The remaining production lines have reached 85% to 90% usage after previous years of downsizing all legacy production lines. Foundries have used their remaining capacity to transfer costs to customers because they lack any excess capacity.
The total production cost has increased because production current demand exceeds what the industry requires. The prices of copper, aluminum, and palladium have surged due to ongoing international conflicts and supply chain disruptions involving the U.S., China, and the Middle East. The rising input costs together with extended lead times have made it impossible to maintain the previous pricing models which existed for mature nodes.
Experts view these price hikes as the new normal for the semiconductor supply chain. The worldwide economy will continue to need power semiconductors because electric vehicles (EVs) and edge AI technologies have become common throughout various industries. Advanced foundries will keep their focus on cutting edge production methods which will create a tight supply situation for mature PMIC manufacturing throughout the year. This situation will lead to increased prices for both industrial equipment and consumer products.
