Texas Instruments and Infineon Signal New Semiconductor Price Increases Amid AI Demand

Texas Instruments and Infineon Signal New Semiconductor Price Increases Amid AI Demand

Memory is not the only segment seeing sharp price increases amid supply constraints driven by artificial intelligence demand. According to a client notice, Texas Instruments is preparing to introduce a new round of price increases beginning April 1, with adjustments reaching as high as 85%.

The report notes that the updated pricing has already been entered into the company internal system and will apply to both direct customers and purchases made through distribution channels. Several distributors indicated that the increases may range from 15% to 85% depending on the specific device and product family. Key categories expected to be affected include digital isolators and power management integrated circuits.

Sources cited in the report also revealed that Texas Instruments sales teams have begun preparing notifications for selected distributor customers, with emails containing updated pricing expected to be sent in early March.

Demand tied to artificial intelligence infrastructure continues to support the analog and power management semiconductor market. Strong activity from AI servers, electric vehicles, and industrial equipment is helping maintain pressure on supply. When a major supplier such as Texas Instruments adjusts pricing, the effects can quickly move across distribution networks and spot markets.

The company previously introduced a significant price increase for customers in China last August, raising prices between 10% and 30% across more than 60,000 products.

Infineon Joins Texas Instruments with Price Increases Starting April 1

Texas Instruments is not the only supplier implementing adjustments. Infineon, another major manufacturer of power management integrated circuits, will also introduce price increases beginning April 1, according to a client notice reported by EE Times China.

The increase will affect power switches and related integrated circuit products. Mainstream components are expected to rise between 5% and 15%, while higher performance devices may see even larger increases.

According to the report, these changes are expected to move throughout the supply chain and directly increase production costs for key printed circuit board applications. Infineon cited two primary reasons behind the adjustment. The first is the surge in demand created by large scale artificial intelligence data center deployments, which has contributed to structural shortages in power semiconductors. The second is rising costs associated with manufacturing expansion, raw materials, and energy, which internal efficiency improvements can no longer fully offset.