--- title: "AI Frenzy Spreads to Power Chips: Infineon Announces Another Price Hike Starting in July" type: "News" locale: "en" url: "https://longbridge.com/en/news/287768644.md" description: "Infineon Technologies AG has announced a second round of price increases for select power semiconductor products effective July 1, reflecting structural shifts in the industry amid surging AI demand and rising costs. The company expects third-quarter revenue to reach €4.1 billion, exceeding analyst expectations. Texas Instruments and Chinese suppliers are also planning price hikes, indicating a widespread trend of price increases across the power chip sector" datetime: "2026-05-27T12:07:47.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287768644.md) - [en](https://longbridge.com/en/news/287768644.md) - [zh-HK](https://longbridge.com/zh-HK/news/287768644.md) --- # AI Frenzy Spreads to Power Chips: Infineon Announces Another Price Hike Starting in July The wave of AI infrastructure construction is spreading pricing pressure from GPUs to the power semiconductor sector. **German chip giant Infineon Technologies AG has announced that it will raise prices on select products again starting July 1, marking its second price hike within 2026**, reflecting a structural transformation across the entire power chip industry under the dual pressures of surging demand and escalating costs. On May 26, Infineon notified customers and partners that it would adjust prices for certain products effective July 1. **The cited reasons include the continuous rise in global semiconductor supply chain costs—covering energy, raw materials, transportation, and services—as well as rapidly growing market demand for the company’s product portfolio, which has exceeded expectations from just a few months ago.** This marks Infineon’s second price increase of the year, following the first round in April 2026. Meanwhile, Infineon’s latest quarterly results corroborate this assessment of strong demand. The company expects revenue for the third fiscal quarter ending in June to be approximately €4.1 billion, higher than the average analyst expectation of €4.04 billion compiled by Bloomberg. It has also upgraded its sales outlook for fiscal year 2026 from “moderate growth” to “significant year-over-year growth.” CEO Jochen Hanebeck stated, “The AI boom continues to heat up, and demand for our power solutions targeting AI data centers is extremely robust.” ## Price Hike Wave Sweeps Through the Power Chip Industry Infineon is not an isolated case. According to the Commercial Times, **Texas Instruments also plans to raise prices starting July 1, covering products such as power management ICs (PMICs) and MOSFETs, marking its second price increase in 2026.** Chinese suppliers are joining this trend as well, with **MacMic Semiconductor planning to raise prices for its IGBT products by approximately 10%, while Jiangsu JieJie Microelectronics prepares to increase prices for its MOSFET and IGBT products by 10% to 20%.** In its announcement, Infineon pointed out that geopolitical tensions are a significant factor driving up supply chain costs. The company specifically noted that traditional transformers, which heavily utilize raw materials like copper, are facing dual pressures of rising costs and extended lead times. In contrast, technologies requiring fewer consumables, such as solid-state transformers (SST), may garner increasing market attention as competition for critical materials intensifies due to heightened AI and infrastructure demands. ## AI Demand Spillover Drives Structural Price Increases Citing views from institutional investors, the Commercial Times reported that this round of price hikes reflects a structural shift in demand rather than short-term inventory restocking. Texas Instruments’ data center revenue grew by approximately 90% year-over-year in the first quarter, indicating that AI demand is accelerating its spread from GPUs to areas such as power management, server power supply systems, and high-voltage MOSFETs. Further industry estimates suggest that the promotion and adoption of NVIDIA’s GB300 platform and high-voltage direct current (HVDC) architectures are expected to bring additional incremental demand for high-voltage MOSFETs, IGBTs, and power conversion components. Sales in Infineon’s Power & Sensor Systems division grew by 26% year-over-year to €1.26 billion in the second fiscal quarter. Regarded as the core business benefiting from the wave of AI infrastructure investment, its strong performance has also boosted overall market confidence in the European chip industry. ## Capacity Expansion Investments Ramp Up Simultaneously In response to demand growth exceeding expectations, Infineon stated that it is accelerating investments to expand production capacity to ensure stable and reliable supply to customers. The company’s upward revision of its full-year sales outlook to “significant year-over-year growth” demonstrates management’s optimism regarding the sustainability of demand. For investors, this wave of price increases in power chips signifies that the benefit chain of AI infrastructure construction is extending upstream. Suppliers of power management and power devices are poised to continue receiving support from pricing power during this cycle. Risk Warning and Disclaimer The market involves risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. 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