Dear Partner,

Thank you for your continuous support and trust! Currently, the global metal raw materials market is experiencing significant fluctuations. To ensure the continuous and stable supply of products and maintain consistent quality, based on cost pressures, we will make necessary adjustments to the prices of some products. Now, we will explain the relevant background to you as follows:

1. Application of Key Metal Materials in Products

In the manufacturing of semiconductors and passive components, various metal materials are indispensable. Among them:

Active devices: Copper, tin, and silver are the main metal materials, and their usage proportions vary depending on the packaging process;

Passive components: For example, thick film resistors involve key metals such as silver, tin, palladium, and ruthenium. These materials account for a significant proportion of the overall cost of the resistors.

2. Analysis of Price Fluctuations of Main Metal Materials

Recently, the prices of the following types of metals have risen significantly, directly affecting the cost:

Copper: The increase has reached approximately 38%. As the most used metal in semiconductor processes, its cost accounts for more than half of the total product cost;

Silver: The increase is as high as approximately 171.1%, occupying an important position in the cost of thick film resistors;

Ruthenium: The increase is particularly significant, reaching approximately 228.3%.

3.  Supply and Demand in the Metal Market and Trends

Copper:

The global production in 2025 is approximately 23.4 million tons (source: GlobalData). China is the largest user of copper, accounting for 57% of the global total, with the demand continuously increasing driven by power infrastructure and AI-related applications.

The current expected changes in the US import tariff policy have triggered changes in global trade flows and regional inventory shortages; combined with the AI industry and military strategic demands, the supply and demand structure of copper is becoming increasingly tense.

Silver:

The global production in 2025 is approximately 26.2 million tons (source: World Silver Association). China is the largest consumer, with photovoltaic conductive silver paste accounting for 50%.

Approximately 75% of the silver comes from the by-products of copper and zinc mines, with low supply elasticity. The global supply has been in a state of shortage for five consecutive years. Although the photovoltaic technology is expected to reduce the usage of silver in 2026, the alternative materials (such as copper) may further exacerbate the contradiction in copper supply and demand.

Summary

In summary, silver is constrained by its supply rigidity and is unlikely to increase production in the short term; while copper, under the multiple demands such as AI, electricity, and strategic reserves, the shortage may further expand. Currently, the cumulative increase in the prices of some metals has exceeded 200%, becoming a common challenge for the global supply chain.

Facing these uncontrollable market factors, we always adhere to the principle of "quality first, lean manufacturing", and through process improvement and supply chain optimization, we strive to absorb some of the upward pressure on costs. To continuously provide high-quality and highly reliable products and services, we have to adjust the prices of some products. We will continue to maintain close communication with you and jointly respond to market changes.

If you would like to know more about the details of the materials or the cost composition, our business team is more than willing to provide you with detailed explanations at any time.

Best wishes!

UOE Technology (Shenzhen) Co., Ltd.

January 19th, 2026

Company Introduction

UOE Technology (Shenzhen) Co., Ltd. was established in 2011. As an internationally renowned supplier of semiconductor products and solutions,UOE Technology has been focusing on the research and development and manufacturing of semiconductor products and solutions for many years. With innovative power devices/floating devices as its main business, from chip development to product packaging and testing, UOE Technology has rapidly grown into an outstanding semiconductor enterprise in the industry with its strong R&D investment and scientific research capabilities.

The main product series of UOE Technology include: a full range of high, medium and low voltage MOSFETs, Trench MOSFETs, SGT MOSFETs, SJ MOSFETs, Planar MOSFETs, TVS, ESD, LDO, etc. These products are widely used in new energy electric vehicles, charging piles, photovoltaics, energy storage, power inverters, power tools, AI large model server power supplies, communication power supplies, 5G base stations, smart home, consumer electronics, industrial control equipment, etc. The main packaging forms of the products include TOLL, TOLG, TOLT, TO263-7, TO263-7Pin+, sTOLL, LFPAK5*6, DFN, PDFN, SOP8, SOT23, TO-247, TO-252, SOT227, etc.

Contact Email: sales@uoetek.com