ON Semiconductor (onsemi), a global leader in intelligent power and sensing technologies, has announced plans to implement price adjustments for select product lines, effective April 1, 2026. The move comes as the semiconductor giant grapples with persistent increases in raw material, manufacturing, energy, and infrastructure costs, compounded by surging demand across key end markets.

In a customer notice issued on March 16, onsemi cited ongoing cost pressures and growing market demand as the primary drivers behind the price hikes. “As part of our continuous cost assessment and investment planning, and in response to the sustained rise in raw materials, manufacturing, energy, and infrastructure costs, onsemi will adjust prices for certain products,” the company stated in the notice. Despite internal efficiency improvement initiatives aimed at mitigating these cost increases, the scale of the upward pressure has exceeded the company’s ability to fully absorb them.

The price adjustments will apply to all new orders placed on or after April 1, 2026, as well as all existing backorders scheduled for shipment on or after that date. ON Semiconductor noted that its customer representatives will provide detailed information to clients, including affected part numbers and specific price adjustment details, to ensure transparency and minimize disruption to their operations.

Industry analysts point out that the price hike aligns with a broader trend in the semiconductor industry, where major players including Infineon, Texas Instruments, and NXP have also announced similar moves ahead of April 1. This industry-wide adjustment reflects the universal cost pressures facing semiconductor manufacturers, including rising prices for key raw materials such as copper and silicon wafers, as well as increased investment in manufacturing capacity to meet surging demand.

Demand for onsemi’s products has been particularly strong in sectors such as power management, industrial applications, and data centers, driven by the global expansion of AI infrastructure, renewable energy projects, and industrial automation. To meet this growing demand and maintain its high standards of quality, reliability, and supply continuity, onsemi has been ramping up investments in manufacturing capacity, technological capabilities, and operational resilience.

Prior to the official announcement, market sources had already reported significant price increases for some of onsemi’s products in the spot market. Distributors noted that prices for certain models had surged dramatically in late January 2026, with some seeing month-on-month increases so substantial that they were described as “shifting a decimal point.” Industry insiders suggested that these pre-announcement price movements may be linked to strong demand for server power management components.

ON Semiconductor emphasized its commitment to minimizing the scope of the price adjustments and working closely with customers to ensure supply continuity. “We remain dedicated to keeping the impact of this adjustment as limited as possible and will maintain close cooperation with customers to ensure transparency and supply continuity,” the company stated. “We will continue to take proactive measures to support your business growth in the face of changing demand and supply constraints.”

For more information on the price adjustments, customers are advised to contact their respective onsemi customer representatives. As the semiconductor industry continues to navigate cost pressures and strong demand, market watchers will closely monitor how these price changes impact the broader supply chain and end markets.