Foundries and OSATs raise wafer and packaging costs as AI data centers strain 8‑inch capacity and power‑device supply.
As AI‑driven demand tightens supply for power‑management components used in data centers, semiconductor foundries are raising prices for mature‑node chips.
Already, China Micro Sem has announced price increases of 15% to 50% for its microcontroller units and NOR flash memory, citing a “severe” imbalance between supply and demand and extended delivery times for packaged products.
The move reflects broader pressure across the mature‑node ecosystem, where demand for power devices has outpaced available capacity. Taiwan‑based Vanguard International Semiconductor, key indicator for mature‑node pricing, is estimated to raise wafer prices by around 4% to 8% starting in the first quarter of 2026, according to Commercial Times. Vanguard’s monthly capacity of roughly 280,000–290,000 wafers is running near full utilization, driven by orders for power‑device production linked to AI data‑center expansion. China’s SMIC and Hua Hong are similarly operating at full capacity, with prices for certain mature processes already up by about 10%.
The surge stems from AI data centers’ shift to high‑voltage direct‑current (HVDC) architectures, which sharply increase demand for high‑voltage power components such as MOSFETs. As voltage ratings move from 600V to 1200V, larger die sizes reduce the number of chips per 8‑inch wafer, effectively shrinking real supply even when nominal capacity is unchanged. TrendForce projects that global 8‑inch foundry utilization will rise to 85%–90% in 2026, up from 75%–80% in 2025, as TSMC and Samsung phase down some 8‑inch capacity while AI‑related demand continues to grow.
Downstream, packaging and testing providers are also seeking price hikes of roughly 8%–20%, with major OSAT players operating near 90% utilization amid tight AI‑server demand.
If automotive and industrial demand recovers alongside AI growth, mature‑node markets could enter a sustained supply‑demand imbalance, leaving further price increases possible in the near term, impacting costs for data‑center operators, hardware makers, and end‑market industries.
