Cost Crunch Hits Chips Onsemi Announces April Price Hike

Rising costs, surging demand Onsemi’s April 2026 price hike signal deeper pressure building across the semiconductor industry as global production expenses continue to climb.

Onsemi has reportedly issued a notice on March 16 announcing a price adjustment for select products. The move is driven by continued increases in raw materials, manufacturing, energy, and infrastructure costs.

The revised pricing will take effect on April 1, 2026.

The company said the decision is part of ongoing cost evaluations and investment planning as it works to manage rising input expenses. It also highlighted strong demand across semiconductor markets, especially in power, industrial, and data centre applications.

According to onsemi, meeting this growing demand while maintaining product quality, reliability, and consistent supply requires increased investment in manufacturing capacity, advanced technologies, and operational resilience.

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Despite implementing internal efficiency measures, the company noted that the scale of cost increases cannot be fully absorbed.

Details about the specific products affected and the extent of the price changes have not been disclosed. Customers will be informed directly through company representatives about impacted part numbers and updated pricing.

The new pricing will apply to all orders placed on or after April 1, 2026. It will also affect existing orders scheduled for shipment on or after that date.

Onsemi emphasised that it aims to limit the scope of the increase and will work closely with customers to ensure transparency and smooth operations.

The company also reaffirmed its commitment to supporting customer growth amid changing demand and supply constraints.

This move follows similar announcements from other major semiconductor companies, including Analog Devices, Infineon Technologies, Texas Instruments, and NXP Semiconductors, which have also cited rising material and manufacturing costs.

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Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

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