Entering the second quarter of 2026, the global electronic and electrical industry is facing unprecedented cost pressure. A comprehensive industry-wide price surge, driven by the explosive demand for AI computing power and the sharp rise in commodity prices, is spreading rapidly. Price increases have become a consensus across the industrial chain, from core components to terminal home appliances and consumer electronics, profoundly reshaping the market landscape and consumer choices.
1. Dual Pressure from Raw Materials & Chips, Costs Hit Multi-Year Highs
The current round of price increases stems from a dual supply shock.
On the raw material side, prices of bulk commodities such as copper, aluminum and ABS plastics continue to rise. As of early April, copper price reached RMB 94,452 per ton, up 18.2% year-on-year; electrolytic aluminum rose 13.5% year-on-year; ABS plastic price surged 26.2% year-on-year. Copper accounts for 25%-30% of air conditioner production cost, adding over RMB 300 to each 1.5HP unit; refrigerant prices have jumped 80% this year alone.
On the chip and electronic material side, production capacity for AI servers has created a crowding-out effect. Major storage manufacturers including Samsung and SK Hynix have shifted 70%-80% of their advanced capacity to HBM (High Bandwidth Memory), leading to tight supply of consumer-grade DRAM and NAND flash. Prices of MCUs and storage chips for home appliances have soared by over 30% in six months. On April 3, Japan’s Mitsubishi Gas Chemical announced a 30% price increase across its copper-clad laminate (CCL) product line, followed by top domestic manufacturers such as Kingboard and Nan Ya. PCB industry average prices are expected to rise by more than 20%.
2. Home Appliance Industry Takes Lead in Price Adjustments, Retail Prices Rise Sharply in April
Cost pressure has quickly transmitted to the retail market. Starting April 1, leading brands including Midea, Haier and TCL raised supply prices: air conditioners up 5%-8% (RMB 100-150 per unit); kitchen appliances up 10%-20%; white goods and small home appliances up 3%-5%; some high-end models saw a 30% increase.
This round of pricing adjustments also aims to restore industry profit margins, which have been squeezed by prolonged price wars. Coupled with the 2026 policy shift of home appliance replacement subsidies from direct full subsidies to time-limited coupons, the subsidy ratio has dropped to 15%, allowing prices to gradually return to market norms. Industry insiders predict that as low-cost inventory clears, consumers will feel more obvious price increases after May.
3. PCB & Semiconductor Capacity Expansion Accelerates, but Short-Term Supply Shortage Persists
Facing strong demand, the industrial chain is accelerating capacity expansion. SEMICON China 2026 showed that packaging and testing firms such as Taiji Semiconductor and Tongfu Microelectronics announced plans to double production capacity in 2026; top domestic PCB manufacturers invested over RMB 40 billion in high-end capacity.
However, capacity expansion involves significant lag time. Semiconductor fabs take 18-24 months to build, and delivery lead times for high-end PCB equipment can reach up to 2 years. TrendForce forecasts that supply shortages will persist throughout 2026, and the upward price trend may extend into the first half of 2027. Industry consolidation is intensifying: leading enterprises strengthen their position through scale and technological advantages, while small and medium-sized manufacturers face dual pressure from costs and orders, accelerating market clearance.
4. AI Empowerment Becomes Key to Breakthrough, High-End Transformation Speeds Up
Crises also bring opportunities. AWE 2026 confirmed that AI-powered home appliances have become the core breakthrough for the industry. Smart home appliances equipped with large language models have upgraded from “functional devices” to “lifestyle assistants”, with unit prices rising 30%-100% and gross margins improving by 5-10 percentage points. On March 31, TCL signed an agreement with Sony to establish a joint venture for its home entertainment business, deepening high-end and global layout in the TV sector.
Post time: Apr-10-2026
