Fengyan Technology: Global Raw Material Prices Continue to Rise, Product Prices to Be Adjusted Starting April 1st

Another domestic chip manufacturer plans to raise prices.

Recently, Fengqiao Technology stated in its latest price adjustment notice that, despite the ongoing global raw material price increases, the company is committed to not raising prices and is doing its best to provide stable and reliable chip products for its customers. However, industry capacity remains tight, and current prices can no longer support future capacity guarantees and product delivery.

“To ensure capacity and stabilize chip supply, the company has carefully decided to adjust prices for products on sale starting April 1, 2026. The actual increase will depend on specific products. Please confirm with the company’s sales staff,” the notice states.

Fengqiao Technology specializes in designing high-performance BLDC motor driver control chips, covering all key chips for motor control, including main control MCUs/ASICs, driver ICs (HVIC), and motor-specific power devices (MOSFETs). Its products are widely used in home appliances, power tools, sports and travel, industrial, and automotive fields.

The price adjustment notice did not specify the exact increase for these chips. From the industry segment perspective, major international companies such as Texas Instruments (TI) and Infineon have already announced price hikes in the motor driver control chip sector.

In February this year, Infineon announced that due to persistent tight supply of power switches and related chips, as well as rising raw material and infrastructure costs, the company would raise prices on these products starting April 1, 2026.

The notice also indicated that the semiconductor market has seen a significant demand increase for some Infineon products, mainly driven by large deployments of AI data centers, leading to shortages of certain power switches and related chips. To support this growing demand, Infineon needs to make substantial additional investments to expand wafer fab capacity. Additionally, the company is facing rising costs for raw materials and infrastructure.

Texas Instruments recently announced that it will raise prices on some devices starting April 1 this year. Industry insiders suggest that this price adjustment may affect some of TI’s analog and embedded product lines. The price increases could range from 15% to 85%, covering core products such as digital isolators and power management ICs, depending on the device and product series.

Previously, Texas Instruments had already raised prices by 10%–30% in fields like industrial control and automotive electronics.

Looking at the domestic chip industry, since the beginning of this year, Chinese manufacturers such as SMIC, Goke Micro, Innosilicon (rights protection), Silan Micro, Biyi Micro, and Xinjieneng have announced product price increases.

“The current cycle of chip price hikes started with the explosion of AI demand, which caused supply shortages and price increases in storage chips (like DRAM and NAND). Rising costs have led to higher chip manufacturing and testing capacities, transforming price hikes from individual companies into a clear industry trend,” said an industry insider in China.