I'm a product marketing staff member at Ofeixin. Our company develops wireless module solutions, working upstream with chip manufacturers like Qualcomm, Realtek, WUQI, and HiSilicon, and downstream serving end customers in fields such as smart homes, industrial IoT, and automotive electronics. Simply put, our role is to transform chips into mass-producible module products and then deliver them to customers for use in complete systems .
we enter the second half of 2026, my own work experience, as well as that of my colleagues, can be summed up in two words: unpleasant .
Customers are pushing – projects can't stop, delivery dates can't be delayed, and costs can't rise. But the reality is, component prices are constantly increasing: crystal oscillators are up 10%-30%, PCBs 20%-30%, inductors 30%-70%, and upstream chip manufacturers are also adjusting prices, with ASE (ASE Technology Holding Co., Ltd.) raising prices by over 20%. As module manufacturers, we're in the middle of the supply chain; we have to accept the upstream price increases, but downstream customers are unwilling to bear them . The BOM cost of every WiFi/Bluetooth module is being passively increased, and our profit margins are being continuously squeezed.
Even more concerning is the less-than-optimistic market outlook. Consumer IoT growth has slowed significantly; WiFi 7 appears promising but its penetration rate is only 8%; and despite years of hype, AI modules still only account for single-digit percentages of shipments. Customer orders are becoming more fragmented and uncertain. Meanwhile, the US FCC is imposing component-level bans, and EU compliance requirements are becoming increasingly stringent, making export options narrower and more expensive .
These problems don't occur in isolation; they are systemic and structural. I want to organize these observations and thoughts not to predict the industry's downfall, but as a frontline practitioner, to conduct a review as objectively as possible— where the problems lie and what we can do .
The following are real industry observations from the Ofeixin team in mid-2026.
I、Supply chain pain points: The 2026 price hike wave will be fully upgraded.
1.1 Price Increases Across Components: From Crystal Oscillators to PCBs, No Component Was Spared
In July 2026, the module industry ushered in the most intense wave of component price increases in recent years, showing a trend of cost resonance across the entire industry chain.
the PCB sector, leading company Kingboard Laminates and its A-share listed counterparts both raised their prices by 10%-30% ; crystal oscillators and bases saw increases of 10%-30% ; power semiconductor Infineon and its A-share listed counterparts rose by 10%-22% ; MLCC Murata raised its prices for AI servers and automotive-grade products by 10%-40% ; inductors TDK rose by 30%-70% ; and resistors Thick Sound and its A-share listed counterparts rose by 20%-30% .
The root cause lies in the out-of-control prices of upstream commodities: the annual price increases of non-ferrous metals such as gold, silver, copper, and tin have reached 30%-200% , while the price increases of components such as PCBs, memory chips, resistors, capacitors, inductors, and IGBTs have reached as high as 50%-800% , and the price of electronic cloth has nearly doubled compared to the low point in Q3 2025.
When this trend extends to the module segment, a divergent pattern emerges: " high-end prices have already increased, mid-to-low-end prices are temporarily stable, and the trend is still spreading ." The BOM cost of each WiFi/Bluetooth module is passively rising.
1.2 Price Hikes Across the Entire Semiconductor Supply Chain: Pressure Reached Across the Entire Line from Substrates to Packaging and Testing
Beyond components, the entire semiconductor industry chain is also experiencing a wave of price increases. Packaging and testing giant ASE officially announced price increases exceeding 20%. Indium phosphide giant Coherent announced price increases of 15%-20% for ordinary indium phosphide substrates and 30%-40% for high-end epitaxial wafers. Silicon wafer giant Shin-Etsu Chemical raised prices by 5%-8% for standard models and 18%-22% for high-end silicon wafers.
Charging module manufacturers have taken the lead – starting July 1, 2026, many charging module manufacturers will raise the prices of their entire product line by 15%, directly due to the rising costs of PCBs, silicon carbide chips, resistors, capacitors, relays, and metals such as copper and silver.
For WiFi/Bluetooth/PLC module manufacturers, rising costs at each level of the supply chain are eroding their already thin profit margins.
1.3 Industry gross margins remain under pressure
According to industry report data, the industry's average gross profit margin in 2025 was 21.3%, a decrease of 8 percentage points compared to 2024 , mainly due to the erosion of profits by rising prices of upstream chips and components. Leading companies maintained gross profit margins above 26% thanks to economies of scale and their self-developed chip capabilities, but the profit margins of small and medium-sized module manufacturers are being continuously squeezed.
Entering 2026, the price increase of electronic components far exceeded the level of 2025, and the downward pressure on gross profit margin will only increase .
II. Market Pains: Growth Divergence and Value Dilemma
2.1 Slowing growth in the consumer market
In 2025, global shipments of IoT modules reached 1.68 billion units, a year-on-year increase of 31%. However, the growth rate of module shipments for consumer IoT products (smart home, wearable devices) has slowed to 12% . The consumer electronics sector contributed more than 50% of the shipments, but its growth rate has slowed to below 5%.
In contrast, the Internet of Things (IoT) and Industrial Internet sectors are growing at a rate as high as 22% . The market is shifting from "ubiquitous connectivity" to "scenario differentiation"—not all sectors are growing, and manufacturers that have chosen the wrong direction will face the dual pressures of shrinking demand and price wars.
2.2 WiFi 7: The "Sweet and Painful" Process of Penetration Climbing
WiFi 7 is seen as the next growth engine for the industry, but its penetration rate in 2026 is still far below expectations .
Industry forecasts predict that WiFi 7 penetration will increase from 5% in 2025 to 8% in 2026 , contributing as much as 18% of revenue. The initial cost of a WiFi 7 module was $12, 40% higher than that of WiFi 6E, but it is expected to fall below $9 by Q4 of 2026.
The good news is that WiFi 7 modules have entered the mass production and deployment stage. In June 2026, GCI Science & Technology disclosed that its Wi-Fi 7 modules had passed the certification of several leading customers and entered the small-batch delivery stage. However, the contradiction between high costs and low penetration rate remains a hurdle that module manufacturers must overcome .
2.3 AI Modules: The Gap Between Expectations and Reality
Edge AI modules are seen as a new growth driver, with global shipments of related modules expected to reach 12 million units by 2025. Shipments of edge intelligence modules (integrated AI accelerators) are projected to reach 230 million units, representing a year-on-year increase of 189%.
However, the market penetration rate of AI modules is still far below the industry's early optimistic expectations . The unit price of consumer IoT product modules has increased by 19% year-on-year due to the integration of AI edge computing capabilities, but this "price increase" is more driven by cost than by perceived value. In 2026, the shipment share of module solutions equipped with integrated AI acceleration engines is expected to be close to 15%, still a considerable distance from widespread adoption.
2.4 The Industry Dilemma of "Increased Revenue but No Increased Profit"
In 2025, the global average export price of modules was US$23.7 per unit, a 21% decrease compared to the same period in 2023 , mainly due to fierce competition in the low-to-mid-range module market leading to price wars. Chinese manufacturers accounted for 55% of global shipments, but their average unit price was about 30% lower than that of similar products overseas.
With shipments increasing, unit prices decreasing, and costs rising—under this triple squeeze, "increased revenue but not increased profits" has become a common predicament in the industry.
III. The Pain Points of Technology and Application: The Gap Between "Usable" and "Effective"
3.1 Industrial Scenarios: Reliability Challenges in Electromagnetic Environments
WiFi/Bluetooth modules perform reasonably well in consumer scenarios, but when they enter industrial settings, electromagnetic interference immediately becomes the most challenging problem .
In industrial settings, the strong electromagnetic interference generated by equipment such as frequency converters and motors often leads to signal attenuation, packet loss, and even frequent disconnections in ordinary wireless modules. The requirements for wireless modules in the Industrial Internet of Things (IIoT) have evolved from simply "being able to connect" to "maintaining stable connections even under strong interference ." This demands that modules meet standards far exceeding those of consumer-grade products in terms of RF design, electromagnetic compatibility, and anti-interference capabilities.
3.2 Multi-protocol coexistence: "traffic congestion" in the 2.4GHz band
The 2.4GHz band is already overburdened. Multiple protocols such as WiFi, Bluetooth, Zigbee, and Thread are crowding onto the same band, and mutual interference has become a common pain point for smart homes and the Industrial Internet of Things .
In environments with numerous Wi-Fi hotspots and Bluetooth devices in the same space, Zigbee packet collisions and high packet loss rates become particularly prominent. The interference problem caused by multiple protocols coexisting cannot be solved independently by a single module manufacturer ; it requires collaborative optimization across the entire industry at the protocol, hardware, and system levels.
3.3 The technical limitations and cost pressures of PLC
While PLCs have the unique advantage of being able to communicate as long as they have power, their technical limitations are also obvious .
Low-cost PLC chips and modules face significant cost pressures compared to WiFi and BLE communication modules, which are already widely used in local communication in smart homes . The ability to embed small-sized PLC modules into small smart home products such as 86-switch panels, light bulbs, and sensors places higher demands on the chip's peripheral interfaces (such as multi-channel PWM, multi-channel ADC, and more than 10 GPIOs).
The penetration of PLCs in the consumer market still faces the dual bottlenecks of cost and technology.
IV.Geopolitical Pain: The "Compliance Storm" Escalates in 2026
4.1 FCC New Rules Take Effect: From "Whole Machine Ban" to "Component Blockade"
By 2026, geopolitical factors had evolved from "potential risks" to "real costs . "
In July 2026, the U.S. Federal Communications Commission (FCC) formally voted to completely ban the sale of equipment in the United States containing key hardware components from Chinese companies deemed to pose a "national security risk ." The FCC chairman explicitly stated that this move aims to "completely close the loopholes in components."
The restrictions are no longer limited to specific brand-name end products, but extend to the bottom layer of the entire electronics supply chain . All electronics manufacturers selling products in the U.S. market must undergo in-depth supply chain traceability and compliance audits.
4.2 Certification barriers have been comprehensively upgraded.
The FCC certifies approximately 40,000 electronic devices annually, with about 75% of the testing still relying on Chinese laboratories . On April 30, 2026, the FCC unanimously passed a new rule by a 5-0 vote, prohibiting laboratories in China from providing FCC testing and certification for electronic devices exported to the United States. The accreditation of already recognized laboratories in China will gradually expire within two years.
Furthermore, the FCC is planning to expand restrictions on Chinese communication modules, potentially banning Chinese-made mobile communication modules from the U.S. market . Once a module is included on the FCC's "Control List," it will be considered a potential national security risk, unable to obtain FCC certification, and thus subject to a complete ban on its entry into the U.S. market.
4.3 Profound Impact on Chinese Module Manufacturers
Chinese module manufacturers account for 55% of global shipments , making them highly dependent on exports. In 2025, China's wireless module exports reached $18.5 billion, primarily destined for Southeast Asia and Europe. If the restrictions imposed by the United States are fully implemented, they will directly impact billions of dollars in exports.
Analysts believe that if mobile communication modules are ultimately included in the restricted list, global manufacturers will be forced to redesign product architectures, change suppliers, and rebuild certification processes . For connected vehicle, industrial automation, and smart city systems that heavily rely on Chinese modules, this could lead to increased costs and supply delays in the short term.
V. As a module solution provider, what is our perspective?
Having addressed these four major pain points, let's return to the initial question: As a module solution provider in the middle of the industry chain, what can we do?
Frankly, we can't control supply chain price increases, we can't change geopolitics, and we can't control the evolution of technological standards. But our value lies precisely in making "connectivity" simpler and more reliable for our customers in the most complex environments .
Component price increases are a fact, but we can help clients keep their BOM costs within a reasonable range through more precise solution selection and more flexible inventory strategies . Low WiFi 7 penetration is also a fact, but our work involves helping clients complete solution verification and mass production preparation while the technology maturity curve is still climbing—so that their products are ready when the market takes off. FCC compliance is becoming more difficult, but we can help clients plan their compliance path in advance , avoiding missing market opportunities due to certification delays.
The industry environment in 2026 is indeed more complex than ever before. But the more complex the market, the more it needs professional intermediaries to reduce transaction costs and technical barriers. This is why Ofeixin has chosen to focus on module solutions .
For module solution providers, the ability to maintain delivery capabilities under cost pressure, help customers reduce selection risks amidst technical challenges, and make compliance predictions amidst geopolitical changes will determine who survives this round of industry reshuffling.
The key to navigating economic cycles lies not in the size of the business, but in the depth of understanding of the industry chain and the speed of response.
(Data sources for this article: IIM Information Global IoT Module Market In-Depth Development Research Report (2026), Global Wireless Module Technology Development and Market Prospect Analysis Report (2026), Global IoT Module Industry Development and Outlook Report (2026), Shanghai Securities News, Securities Star, International Electronic Business Information, and other public information)
