Since early 2026, the power adapter industry has experienced a significant wave of price increases. As an essential component for IT equipment, LED lighting, and small household appliances, the rising cost of power adapters is driven by three converging pressures: soaring raw material costs, AI-driven capacity reallocation, and structural supply chain tightness. Multiple upstream component suppliers have issued price adjustment notices, and market shortages are spreading, placing mounting cost pressure on OEMs and system integrators.
Base Metal Prices Remain Elevated, Cost Pressures Cascade Upstream
A primary driver of the current price surge is the sustained climb in key raw materials including copper, silver, and tin. Copper — a critical conductive material used in transformers, PCB copper foil, and cables within power adapters — has seen prices rise sharply since last year. Copper prices surged over 34% in 2025 and continue to trade at elevated levels in 2026. The rally in gold and silver prices has further lifted the entire non-ferrous metals complex.
These trends have directly impacted the upstream supply chain. Industry reports indicate that power supply production costs are expected to rise by 6% to 10% due to significant increases in copper, silver, tin, and other raw material prices. Market leader Delta Electronics has initiated a second round of price hikes, with increases ranging from 5% to 20%, while Chinese power supply giant Megmeet has also issued price increase notices to downstream customers, with estimated increases of 10% to 20% across its full product line.
AI Boom Triggers Capacity Shift, Consumer-Grade Components Squeezed
If raw material inflation is the visible cost driver, the structural disruption caused by AI computing demand on the traditional electronics supply chain runs even deeper.
MLCC Capacitors Bear the Brunt. Multilayer Ceramic Capacitors (MLCCs) are critical components in power adapter BOMs. Since 2026, passive components — led by MLCCs — have faced a "structural shortage." A single AI server (GB300) consumes over 30,000 MLCC units. As Japanese and Korean major manufacturers actively cut production capacity for consumer-grade general-purpose components and shift to high-margin AI and automotive-grade products, AI demand has created a powerful "crowding-out effect" on high-end components. The production line resources consumed by a single AI-grade high-capacitance MLCC could produce multiple times the number of ordinary consumer-grade products.
This effect has now reached the consumer market. According to TrendForce data, the book-to-bill ratios of the three major manufacturers — Murata, Samsung Electro-Mechanics, and Taiyo Yuden — have all hit new highs. Since June, the Chinese channel market has initiated price hikes for mainstream consumer-grade MLCCs, with average increases of 15% to 25%. The Huaqiangbei market has even seen "multiple prices in a single day," with some high-capacitance part numbers continuing to surge within days. Prices for AI-dedicated MLCCs in certain specifications have spiked 3 to 10 times, with one merchant recalling that "picking up goods two hours later cost 50% more". Lead times for some models have extended from 8–12 weeks to 16–24 weeks.
Power Management ICs Also Under Pressure. In February, Infineon reportedly sent letters to customers stating that due to strong AI-driven demand, it would raise prices on power switch/IC components effective April 1. Power switches and ICs perform power conversion and regulation functions across applications including power adapters, motherboards, and AI acceleration modules. Since different types of power chips are often manufactured on the same production lines, a surge in demand for any single category can trigger cascading shortage effects.
Power Device Lead Times Extend. Delivery lead times for low-voltage MOSFETs have stretched to 12 to 52 weeks or even longer. Tightening supply of MOSFETs and other power devices directly impacts production scheduling for power adapter OEMs.
Additionally, PCB upstream materials — including copper foil, electronic fabric, and copper-clad laminates — have seen collective price jumps. High-end HVLP copper foil processing fees have risen from RMB 200,000/ton to RMB 250,000–300,000/ton, high-end electronic fabric prices have surged from RMB 4.2/meter to RMB 7.4/meter (a 100% increase in six months), and FR4 copper-clad laminates have undergone four price hikes this year with cumulative increases exceeding 40%.
Industry Landscape Transforms, Power Adapter Manufacturers Face Challenges
In summary, power adapter price increases result from the convergence of raw material costs, AI-driven structural demand, and supply chain reconfiguration. Looking ahead, as NVIDIA, Google, AMD, and other new AI chip platforms begin mass production in the third quarter of 2026, capacity will remain occupied by AI orders. TrendForce expects the fourth quarter to be a critical period for observing whether the high-end MLCC market officially shifts to a shortage.
For power adapter brands and OEMs, navigating cost pressures through supply chain diversification, domestic alternative sourcing, and technical optimization has become a core priority for the second half of 2026.
In times of rising costs, choosing a stable supplier matters more than ever.
With 18 years of manufacturing experience, 20+ global certifications, and a monthly capacity of 900,000 units, Hua Yi Teng delivers reliable power solutions — whether you need standard products or custom designs.