Power semiconductors are already increasing in price before 1MW racks even arrive

This is happening before the industry reaches 1MW rack architectures
Those will arrive later with platforms like NVIDIA Feynman and AMD’s MI500 rack-scale systems
Rubin Ultra is already expected to push rack power toward roughly 600kW+, but even the arrival of Vera Rubin, at around 225kW per rack, is enough to create a demand shock across the power semiconductor supply chain
These are the price hikes reported so far:
> Infineon: second 2026 price increase, effective July 1, covering selected power products
> Texas Instruments: reported July 1 price increase across products including PMICs and MOSFET
> Silan Micro: 15%+ price increase across its full product portfolio, effective July 1
> Yangjie Technology: 10–15% price increase across its full product range, effective July 1
> MacMic: 10% planned increase for IGBT
> JieJie Microelectronics: 10–20% planned increases for MOSFETs and IGBTs
> Li-On Micro: 10–15% increase for power chips
> CR Micro: full-line price increases starting at 10%+
> NCE Power: price increases across MOSFETs and related power devices
The reason higher-power AI racks need more power semiconductors is that AI chips do not just need more electricity. They need the hardware to control that electricity
A GPU does not consume power directly from an 800V rack bus. That power has to be stepped down through multiple stages until it reaches the GPU at roughly 1V or less, but at extremely high current. The higher the rack power, the more current, heat and switching stress the system has to manage
This cannot be solved that with one giant power chip. One large device would be too hot, too inefficient, too difficult to manufacture and too risky if it failed
Instead, they split the load across many power stages and many VRM phases. Each phase uses MOSFETs, drivers, controllers, capacitors and inductors
That means higher rack density does not just require bigger power supplies. It requires a much more complex power architecture, including new advanced cooling designs using microfluidics
This higher power density and complexity creates a supply explosion at every step of the power and heat management process, whose effects can already be seen across the industry