The AI boom spreads to power chips, Infineon announces another price increase starting in July.

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The wave of AI infrastructure construction is spreading price hike pressure from GPUs to the power semiconductor sector. German chip giant Infineon announced that it will raise prices for certain products again starting July 1—this is its second price increase in 2026—reflecting a structural shift in the entire power chip industry under the dual pressures of surging demand and rising costs.

On May 26, Infineon notified customers and partners that it will adjust prices for some products starting July 1, citing sustained cost increases across the global semiconductor supply chain, encompassing energy, raw materials, transportation, and services, while market demand for its product portfolio is growing rapidly, exceeding expectations from a few months ago. This marks Infineon’s second price hike this year, following its first in April 2026.

Meanwhile, Infineon’s latest quarterly results corroborate this strong demand judgment. The company expects revenue of about €4.1 billion for the third fiscal quarter ending in June, exceeding Bloomberg’s analyst consensus estimate of €4.04 billion, and has upgraded its fiscal 2026 sales outlook from “moderate growth” to “significantly year-on-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 strong.”

Price Hikes Sweep Across the Power Chip Sector

Infineon is not alone. According to the Commercial Times, Texas Instruments also plans to raise prices starting July 1, covering products such as Power Management ICs (PMIC) and MOSFETs; this is its second price hike of 2026. Chinese suppliers have joined this trend as well; Mickro Microelectronics plans to raise IGBT product prices by about 10%, while Jiangsu Jiejie Microelectronics is preparing to increase prices for MOSFET and IGBT products by 10% to 20%.

Infineon noted in its announcement that geopolitical tensions are a major driver of increased supply chain costs. The company specifically mentioned that traditional transformers, due to their heavy use of materials like copper, are facing both higher costs and longer delivery times, while technologies that consume fewer materials—such as solid-state transformers (SST)—may attract greater market attention as competition for key materials intensifies amid soaring AI and infrastructure demand.

AI Spillover Effects Drive Structural Price Increases

Citing institutional investor views, the Commercial Times reports that this round of price increases reflects a structural shift in demand rather than short-term inventory restocking. Texas Instruments' first quarter data center revenue grew around 90% year-on-year, indicating that AI-driven demand is quickly spreading from GPUs to power management, server power supply systems, and high-voltage MOSFETs.

Industry estimates further show that the proliferation of Nvidia’s GB300 platform and high-voltage direct current (HVDC) architecture is expected to generate additional demand growth for high-voltage MOSFETs, IGBTs, and power conversion components. Infineon’s Power & Sensor Systems Division saw sales jump 26% year-on-year to €1.26 billion in the second quarter, making it the core business benefitting from the AI infrastructure investment boom, and its strong performance has also boosted overall market confidence in the European chip industry.

Capacity Expansion Accelerates

Amid faster-than-expected demand growth, Infineon said it is accelerating investment to expand capacity, ensuring stable and reliable supply to customers. The company has raised its full-year sales outlook to “significant year-on-year growth,” reflecting management’s optimism about sustained demand.

For investors, this round of power chip price hikes signals that the AI infrastructure benefit chain is extending upstream, and suppliers of power management and power devices are likely to continue to have pricing power throughout this cycle.

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