With the cycle of DRAM and GPUs becoming more expensive just beginning, it seems the next step in the price increase trend is the most basic PC building parts like power supplies and CPU coolers. According to a VideoCardz report, Guangzhou Xinhongzheng Electronic Technology Co., Ltd, a leading electronics manufacturer in China, the company has informed customer that power supply prices may rise by about 6-10%, while CPU coolers are expected to see a 6-8% increase. These products depend on raw materials like copper, silver, and tin, which are critical for both PSUs and CPU coolers, leading to an anticipated cost increase of at least 6% for manufacturers with standard contract commitments.
Guangzhou Xinhongzheng Electronic Technology advises customers that if they plan to secure significant inventory, they should do so in January, before the promotional period ends in February. The note indicates that nearly 90% of products are currently offered at discounted prices from suppliers, suggesting that most items like PSUs and CPU coolers will soon be sold at full price, likely with a higher markup for consumers. If manufacturing has long relied on discounts, the price increase might not stop at the 6-10% range but could be even higher. As these companies are adjusting pricing, we could see a massive price hike unfold in the coming weeks. However, this should be taken with a grain of salt as we have no third-party verification of these claims, so we need to wait and see what is happening across the supply chain.
For raw materials like copper and silver, significant demand comes from industrial processes, particularly in modern data centers. Modern AI data centers consume large amounts of copper wiring both internally and for external connections. The global reliance on copper wiring, coupled with the rapid expansion of AI data centers, has increased demand. Silver’s recent rise in value is due to its scarcity and industrial use, also driving up prices for products that heavily depend on it.