South Korean electronics component suppliers are under growing pressure as rising memory prices drive chip inflation deeper into the supply chain. Finished-goods makers are asking for price cuts of 10% to 20% starting in the third quarter of 2026, while Chinese rivals have been offering bids that are 20% to 30% lower, according to Chosun Biz.

Multilayer ceramic capacitor (MLCC) prices for AI servers have continued to climb, while prices for general-purpose components used in consumer appliances have dropped sharply. The split in the market has opened more room for Chinese suppliers in midrange and general-purpose categories as major manufacturers shift capacity toward higher-value products.

AI server, high-speed networking, and memory demand continued to lift Taiwan's PCB industry in the second quarter of 2026, boosting demand for substrates, high-layer-count boards, and HDI products. Tight supplies of advanced materials and rising raw-material costs also pushed PCB prices higher quarter by quarter.

South Korea's exports of the customs category that carries high-bandwidth memory (HBM) are no longer a two-destination story. Unit-value data show that the chips going to Taiwan and Malaysia are worth several times more per kilogram than those shipped to Hong Kong, China, or Vietnam. That points to a two-tier trade, with premium stacked memory heading to advanced packaging lines and cheaper multichip parts going to transit hubs and lower-unit-value destinations.

China is trying to carve out a foothold in semiconductor supply-chain standards with Micro Han Xin, a miniaturized version of its home-grown barcode designed for chips and other components too small for conventional labels.