Foundries Raise Prices Amid Demand Surge, SMIC and TSMC Among Affected
Foundry price hikes are spreading from advanced nodes to mature processes, with SMIC and TSMC's Vanguard International Semiconductor (VIS) notifying customers of increases around 10%. SMIC's price increases mainly affect its 8-inch BCD (Bipolar-CMOS-DMOS) process platform.
Industry factors, particularly the surge in AI infrastructure investment, are driving demand for power-management chips, consuming significant BCD capacity. BCD integrates power, analog, and digital circuits on a single chip, enhancing performance and reducing costs.
Other foundries, including Hua Hong Semiconductor and CR Micro, also have BCD platforms. Analysts anticipate HV-CMOS will be the next price target due to strong BCD demand. TSMC is reducing its 8-inch capacity to focus on advanced nodes, while high metal prices are also affecting costs.
TSMC plans further price hikes for sub-5nm nodes starting January 2026. UMC, Taiwan's second-largest foundry, is seeking at least a 15% reduction from suppliers starting in 2026.
