Discrete Components Pricing Stabilizes in Q3 2026; GaN FETs See Continued Upward Pressure
Following a period of volatility, pricing for conventional MOSFETs, IGBTs, and diodes is expected to stabilize in Q3 2026. However, demand for gallium nitride (GaN) power FETs in specific high-growth segments continues to drive a unique pricing dynamic.
The global market for discrete components, encompassing standard MOSFETs, IGBTs, and diodes, is projected to see a period of pricing stability throughout the third quarter of 2026. This comes after several quarters of fluctuating prices driven by raw material cost increases and varying demand patterns across industrial and consumer electronics sectors. Manufacturers have largely absorbed recent cost pressures, and production efficiencies have improved, contributing to a more predictable pricing environment for high-volume legacy discrete products.
While the broader discrete market finds equilibrium, Gallium Nitride (GaN) power FETs present a notable exception. Pricing for GaN components is anticipated to face continued upward pressure into Q3 and potentially beyond. This divergence is primarily fueled by robust demand from emerging applications such as 5G telecom infrastructure, data center power supplies, and electric vehicle (EV) charging stations, where GaN's superior efficiency and power density offer significant performance advantages over silicon-based alternatives.
Supply chain constraints, particularly concerning GaN-on-SiC substrates and specialized epitaxy services, are key factors contributing to the elevated costs and restricted availability of GaN FETs. Despite ongoing investments in capacity expansion by leading GaN manufacturers, the ramp-up has been challenged by the complexity of the manufacturing process and the need for specialized equipment. This imbalance between escalating demand and a still-maturing supply chain is likely to sustain premium pricing for GaN components for the foreseeable future.
Procurement managers are advised to monitor GaN market developments closely, as long-term supply agreements and strategic partnerships with GaN suppliers may become crucial for securing stable pricing and delivery. For conventional MOSFETs, IGBTs, and diodes, the stable outlook in Q3 2026 suggests a more favorable environment for routine procurement, though macroeconomic factors and further shifts in raw material costs could still introduce minor fluctuations in the later quarters of the year.