Semiconductor and industrial automation firms announce price hikes

A wave of price increases is sweeping through the semiconductor and industrial automation sectors. Onsemi has announced price adjustments for various products effective October 10, citing rising costs in raw materials, manufacturing, energy, and infrastructure, alongside increased demand from industrial and data center applications. This follows similar moves by Texas Instruments and Renesas Electronics.

In Taiwan, semiconductor manufacturers such as Chiang Fu, Taihan, Dewey, and Nexen are expected to follow suit in the fourth quarter or early next year, with potential increases of 10% to 15% for certain non-contract products. This trend is driven by strong demand from AI data centers and the rising power requirements of AI server cabinets.

Simultaneously, the industrial automation market is experiencing pricing pressure. Major companies including Schneider Electric and Omron have issued price adjustment notices for products ranging from circuit breakers to industrial robots and sensors. Amidst these cost pressures, the industrial computer market is shifting toward edge computing to support AI applications, as manufacturers seek to process data locally to reduce latency and network strain.