Rising raw material costs are driving price increases among upstream electronics and semiconductor materials suppliers. According to TechNews, glass fiber cloth supplier FULLTECH and epitaxial wafer manufacturer VPEC have both issued price adjustment notices to customers, signaling mounting cost pressures across the electronics industry in the second half of 2026.

FULLTECH, a key upstream supplier of PCB materials, officially notified customers on June 26 of upcoming price increases. The company cited continued increases in glass fiber yarn costs, higher energy prices, and fluctuating transportation expenses, all of which have significantly raised production costs.

The notice states that the price adjustments cover FULLTECH’s entire portfolio of E-glass and FLD2 glass fiber cloth products. Prices for E-glass glass fiber cloth will increase by 30%, while FLD2 glass fiber cloth will rise by 15%. The new pricing will take effect for new orders placed on or after July 1, 2026.

As noted by Commercial Times, Japan’s leading glass fiber manufacturer, Nittobo, raised prices for its electronic-grade glass fiber products by 20% in 2025 and has further increased T-Glass prices by 30% this year. As low-dielectric materials such as T-Glass and NER Glass become increasingly important for AI servers, high-speed switches, and next-generation 3.2T transmission platforms, demand for high-end glass fiber cloth continues to rise.

VPEC Raises Epi Wafer Prices

Meanwhile, gallium arsenide (GaAs) epitaxial wafer manufacturer VPEC issued a price adjustment notice to its business partners on June 29, citing the continued rise in global raw material costs over the past year.

The company said it has made every effort to absorb the additional costs through internal optimization. However, after a careful internal review, VPEC decided to implement moderate price increases for its epitaxial (epi) wafers to address mounting operating pressures while ensuring the continued delivery of high-quality products. The exact adjustment will vary by product.

As major upstream suppliers continue to implement price increases, the resulting cost pressures are expected to gradually pass through to downstream manufacturers and brand owners during the third quarter, TechNews notes.

According to TechNews, the price hikes announced by FULLTECH and VPEC represent only the “tip of the iceberg” of inflation in electronic raw materials. Spanning everything from glass fiber cloth to epitaxial wafers, the announcements point to broad-based, systemic cost pressures across the electronics supply chain. The report adds that whether this wave of raw material inflation triggers broader industry-wide price increases will be closely watched by the market.

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(Photo credit: Taiwan Glass)