Power component prices keep rising as supply tightens

The sustained price surge in power semiconductors stems from AI-driven demand cannibalizing mature-node capacity while upstream costs for silicon and SiC substrates spike. Technically, 8-inch fab allocation to high-margin AI PMICs delays industrial and automotive MOSFET/IGBT shipments, pushing downstream inverter makers toward higher integration to offset BOM inflation. Regulatory scrutiny over critical minerals in the U.S. and EU elevates supply chain risk, compelling firms to diversify substrate sourcing. Strategically, Infineon and onsemi are locking foundry capacity via long-term deals, while IDMs in Taiwan, China and mainland China accelerate localized back-end processes to shorten lead times. Over the next 12–24 months, even with new fabs coming online, structural tightness—especially in EV fast-charging and energy storage inverters—will sustain pricing power and accelerate wide-bandgap adoption beyond current forecasts.