Why Are Electronic Hardware Prices Rising? A Brief Industry Overview

Why Are Electronic Hardware Prices Rising? A Brief Industry Overview

Recently, the prices of electronic devices and key hardware components have increased significantly, including chips, modules, power components, and various sensors. The main reasons include:

  1. Upstream capacity shortages: Limited wafer and IC production has extended lead times and driven up component prices.

  2. Rising raw material costs: Copper, aluminum, tin, and other metals continue to increase in price, pushing manufacturing costs higher.

  3. Surging demand for smart technologies: Rapid growth in AI devices, smart home products, and security systems has concentrated industry capacity and raised overall costs.

  4. Higher logistics and compliance expenses: Increases in international shipping, insurance, and warehousing have added further pressure on supply chain costs.

As a provider of smart home and security solutions, we are mitigating the impact of rising prices through advanced procurement, design optimization, and close collaboration with our supply chain partners—ensuring stable and reliable products for our customers.

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