$TRX
Onsemi raises prices starting in October! Three power semiconductor leaders—Chroma, Taiwan Semiconductor (Taiwan Half), and Diodes—see both volume and pricing increase
U.S. IDM leader onsemi (On Semiconductor) announced that, starting October 10, it will raise the selling prices of some power semiconductor products, becoming the latest in a new round of international price hikes after Infineon and Texas Instruments. Power component makers in Taiwan, including Chroma (2481), Taiwan Half (5425), and Diodes (3675), are expected to follow with price increases as early as the fourth quarter, with estimated hikes of 10% to 15%. After onsemi, international power semiconductor giants have continued the price-hike relay.
According to a Commercial Times report, on September 21, onsemi notified customers that some products would have their prices adjusted upward starting in October. Previously, Infineon and Texas Instruments had already announced price increases of 5% to 15%. Renesas’ next round of price hikes is expected to begin in early 2027, keeping the “price-hike relay race” going as major manufacturers take action one after another.
Chroma, Taiwan Half, and Diodes—among other Taiwan suppliers—are said to have already planned to raise prices for non-contracted products by about 10% to 15% as early as the fourth quarter. The actual percentage will vary by product line, customer characteristics, and contract structures. Industry insiders note that the successive statements from international giants effectively reduce the resistance faced by Taiwan manufacturers during price-hike negotiations, and allow costs to be passed on to downstream companies.
(Infineon fired the first shot! Taiwan Half and Chroma to enter the third wave of power semiconductor price increases in October, with increases reaching up to 15%)
AI power infrastructure upgrade is the main driver, expanding demand for power components across the board
The reason behind this price-hike cycle is that power demand for AI computing infrastructure has undergone a systematic change. Over the past year, the power consumption of a single AI rack has surged significantly from the kW range, moving toward levels of several hundred kW and even MW. Power architectures have also continued evolving from the traditional 48V to 800V high-voltage direct current (HVDC), driving demand for power component specifications and quantities across the board.
Specifically, the high-voltage side requires higher-voltage-tolerant silicon carbide (SiC) devices. The intermediate conversion stage boosts demand for gallium nitride (GaN) and high-efficiency MOSFETs. From high-voltage power distribution to the complete conversion chain needed for an approximately 1V supply voltage at the chip level, overall usage increases for high-voltage, high-current MOSFETs, IGBTs, and PMICs. As the power consumption of individual GPUs and CPUs continues to rise, both the specifications and the number of power components required per machine increase as well, creating the conditions for synchronized upward movement in both quantity and pricing.
(Where will the next AI infrastructure wave land? Citrini report reveals “SiC, GaN, and power infrastructure” as new investment directions)
Chroma, Taiwan Half, and Diodes—each with its strengths: see their AI business plans all at once
Among the companies benefiting in Taiwan, Chroma, Taiwan Half, and Diodes are the three major targets currently drawing the most attention from institutional investors. Even though each approaches the AI supply chain differently, all show a clear trajectory of performance acceleration.
Chroma is one of the earliest Taiwan power component makers to disclose growth in its AI business. Its AI revenue contribution ratio has continued to rise from about 11% in the first half. In the second half, shipments of Power MOSFETs, small-signal components, and TVS have started to expand, with new customer projects expected to be introduced in the fourth quarter. Because the average selling price (ASP) of Power MOSFETs is significantly higher than that of traditional components, it has become Chroma’s main revenue driver for its AI applications. In the future, with upgrades to server specifications, this is expected to be further strengthened.
Diodes focuses on opportunities arising from the upgrade of 800VDC power architectures. As AI servers and edge AI power architectures evolve toward native multi-phase power supply and 800VDC, demand for TVS, ESD, and small-package MOSFETs will continue to grow. Under stringent requirements for high frequency, high power, and high stability in AI applications, the traditional approach of replacing TVS with capacitors is no longer viable. TVS and ESD are shifting from “optional components” to “rigid requirements,” raising their product status.
Diodes’ subsidiary, AsiaLink Technology, plans to convert some of its 4-inch capacity to 6-inch as early as the third quarter of 2027. Monthly capacity will double from 12,000 wafers to 24,000 wafers. The company’s orders for automotive MOSFET packaging and testing are already fully booked through 2027. At the same time, it is actively building out 1,000V and 1,200V high-voltage product lines, positioning ahead of next-generation demand.
“Can spot price hikes penetrate the contract market?” is the biggest uncertainty for the outlook
Despite the market consensus that spot price hikes are already underway, whether this cycle can lead to sustained increases in contract prices—and thereby genuinely improve manufacturers’ gross profit margins—still faces several key uncertainties.
The core variable lies in downstream bargaining structures. If international giants adopt differentiated pricing strategies for contract customers, or if wafer fabs and packaging/testing firms can ease bottlenecks in the short term through capacity expansion or redistribution of output, spot price increases may not fully translate into contract prices. As a result, the sustainability of manufacturers’ gross profit margins would be constrained.
Second, the timing of new capacity ramp-ups by Korean manufacturers and other companies also affects the pace of the outlook. If supply response continues to lag behind AI demand growth, near-term tight supply will continue to support higher quotations. Conversely, if new capacity is released heavily in specific quarters, the spot market could face reversal risk.
Institutional investors generally look favorably on the power component sector, expecting that from the fourth quarter of 2026 extending into 2027, the overall industry will see a “triple tailwind” pattern: increased shipment volumes, product prices staying firm with gradual rises, and comprehensive specification upgrades. This would support continuously improving profitability visibility for Chroma, Taiwan Half, and Diodes.
This article, “Onsemi raises prices starting in October! Power semiconductor trio Chroma, Taiwan Half, and Diodes see both volume and pricing rise,” first appeared on .
Onsemi raises prices starting in October! Three power semiconductor leaders—Chroma, Taiwan Semiconductor (Taiwan Half), and Diodes—see both volume and pricing increase
U.S. IDM leader onsemi (On Semiconductor) announced that, starting October 10, it will raise the selling prices of some power semiconductor products, becoming the latest in a new round of international price hikes after Infineon and Texas Instruments. Power component makers in Taiwan, including Chroma (2481), Taiwan Half (5425), and Diodes (3675), are expected to follow with price increases as early as the fourth quarter, with estimated hikes of 10% to 15%. After onsemi, international power semiconductor giants have continued the price-hike relay.
According to a Commercial Times report, on September 21, onsemi notified customers that some products would have their prices adjusted upward starting in October. Previously, Infineon and Texas Instruments had already announced price increases of 5% to 15%. Renesas’ next round of price hikes is expected to begin in early 2027, keeping the “price-hike relay race” going as major manufacturers take action one after another.
Chroma, Taiwan Half, and Diodes—among other Taiwan suppliers—are said to have already planned to raise prices for non-contracted products by about 10% to 15% as early as the fourth quarter. The actual percentage will vary by product line, customer characteristics, and contract structures. Industry insiders note that the successive statements from international giants effectively reduce the resistance faced by Taiwan manufacturers during price-hike negotiations, and allow costs to be passed on to downstream companies.
(Infineon fired the first shot! Taiwan Half and Chroma to enter the third wave of power semiconductor price increases in October, with increases reaching up to 15%)
AI power infrastructure upgrade is the main driver, expanding demand for power components across the board
The reason behind this price-hike cycle is that power demand for AI computing infrastructure has undergone a systematic change. Over the past year, the power consumption of a single AI rack has surged significantly from the kW range, moving toward levels of several hundred kW and even MW. Power architectures have also continued evolving from the traditional 48V to 800V high-voltage direct current (HVDC), driving demand for power component specifications and quantities across the board.
Specifically, the high-voltage side requires higher-voltage-tolerant silicon carbide (SiC) devices. The intermediate conversion stage boosts demand for gallium nitride (GaN) and high-efficiency MOSFETs. From high-voltage power distribution to the complete conversion chain needed for an approximately 1V supply voltage at the chip level, overall usage increases for high-voltage, high-current MOSFETs, IGBTs, and PMICs. As the power consumption of individual GPUs and CPUs continues to rise, both the specifications and the number of power components required per machine increase as well, creating the conditions for synchronized upward movement in both quantity and pricing.
(Where will the next AI infrastructure wave land? Citrini report reveals “SiC, GaN, and power infrastructure” as new investment directions)
Chroma, Taiwan Half, and Diodes—each with its strengths: see their AI business plans all at once
Among the companies benefiting in Taiwan, Chroma, Taiwan Half, and Diodes are the three major targets currently drawing the most attention from institutional investors. Even though each approaches the AI supply chain differently, all show a clear trajectory of performance acceleration.
Chroma is one of the earliest Taiwan power component makers to disclose growth in its AI business. Its AI revenue contribution ratio has continued to rise from about 11% in the first half. In the second half, shipments of Power MOSFETs, small-signal components, and TVS have started to expand, with new customer projects expected to be introduced in the fourth quarter. Because the average selling price (ASP) of Power MOSFETs is significantly higher than that of traditional components, it has become Chroma’s main revenue driver for its AI applications. In the future, with upgrades to server specifications, this is expected to be further strengthened.
Diodes focuses on opportunities arising from the upgrade of 800VDC power architectures. As AI servers and edge AI power architectures evolve toward native multi-phase power supply and 800VDC, demand for TVS, ESD, and small-package MOSFETs will continue to grow. Under stringent requirements for high frequency, high power, and high stability in AI applications, the traditional approach of replacing TVS with capacitors is no longer viable. TVS and ESD are shifting from “optional components” to “rigid requirements,” raising their product status.
Diodes’ subsidiary, AsiaLink Technology, plans to convert some of its 4-inch capacity to 6-inch as early as the third quarter of 2027. Monthly capacity will double from 12,000 wafers to 24,000 wafers. The company’s orders for automotive MOSFET packaging and testing are already fully booked through 2027. At the same time, it is actively building out 1,000V and 1,200V high-voltage product lines, positioning ahead of next-generation demand.
“Can spot price hikes penetrate the contract market?” is the biggest uncertainty for the outlook
Despite the market consensus that spot price hikes are already underway, whether this cycle can lead to sustained increases in contract prices—and thereby genuinely improve manufacturers’ gross profit margins—still faces several key uncertainties.
The core variable lies in downstream bargaining structures. If international giants adopt differentiated pricing strategies for contract customers, or if wafer fabs and packaging/testing firms can ease bottlenecks in the short term through capacity expansion or redistribution of output, spot price increases may not fully translate into contract prices. As a result, the sustainability of manufacturers’ gross profit margins would be constrained.
Second, the timing of new capacity ramp-ups by Korean manufacturers and other companies also affects the pace of the outlook. If supply response continues to lag behind AI demand growth, near-term tight supply will continue to support higher quotations. Conversely, if new capacity is released heavily in specific quarters, the spot market could face reversal risk.
Institutional investors generally look favorably on the power component sector, expecting that from the fourth quarter of 2026 extending into 2027, the overall industry will see a “triple tailwind” pattern: increased shipment volumes, product prices staying firm with gradual rises, and comprehensive specification upgrades. This would support continuously improving profitability visibility for Chroma, Taiwan Half, and Diodes.
This article, “Onsemi raises prices starting in October! Power semiconductor trio Chroma, Taiwan Half, and Diodes see both volume and pricing rise,” first appeared on .
