China power chip makers raise prices, exposing AI server squeeze on mature-node supply

Chinese power semiconductor makers’ price hikes signal structural tightness in mature nodes, not just cost pass-through. Surging AI server demand for PMICs and MOSFETs is cannibalizing 8-inch wafer capacity earmarked for automotive and industrial sectors, forcing downstream OEMs to redesign power delivery architectures. U.S. export controls on equipment restrict domestic capacity expansion to refurbished tools, amplifying yield volatility and compliance risk. TSMC’s Nanjing fab and SMIC will prioritize local AI clients, prompting Infineon and ON Semi to accelerate mid-voltage product shifts to Vietnam and Malaysia. Over the next 12–24 months, this pricing pressure will accelerate domestic component qualification—but also expose China’s lingering import dependence in IGBTs and SiC modules, creating a ‘low-end inflation, high-end bottleneck’ tail risk.