April 21, 2026 /SemiMedia/ — Shin-Etsu Chemical said it will raise prices for all silicone products worldwide by more than 10% starting May 1, as rising raw material and energy costs continue to weigh on production.

The company said higher crude oil and naphtha prices, driven by tensions in the Middle East, have lifted feedstock costs. At the same time, energy, packaging and logistics expenses have also increased, making it difficult to absorb the impact internally.

Silicone materials are widely used in electronics, including thermal management and assembly processes, and are part of the broader semiconductor supply chain. Shin-Etsu is one of the leading suppliers in the global silicone market, alongside Dow and Wacker. The price move is expected to pass through to downstream electronic components over time.

The adjustment follows similar actions by Japanese chemical makers, as Mitsubishi Chemical recently raised prices for ethylene-related products. Shin-Etsu also announced a price increase for PVC resin earlier this week, citing higher feedstock costs.

In the semiconductor sector, silicon wafer suppliers including Shin-Etsu, SUMCO and GlobalWafers have already signaled further price increases of around 5% to 8% for the second half of the year. Prices for 12-inch wafers are expected to trend higher, while 8-inch wafers are also seeing steady increases.

Industry sources say higher energy costs are pushing up wafer production expenses, while demand from AI and high-performance computing is improving utilization at advanced nodes. These factors are supporting a gradual recovery in supply-demand balance and keeping prices on an upward path.