Foundries Raise Prices Amid Demand Surge, SMIC and TSMC Among Affected
Foundries, including SMIC and TSMC's Vanguard International Semiconductor, are implementing price increases of around 10% due to a surge in demand for power-management chips driven by AI infrastructure investments. SMIC's hikes primarily impact its 8-inch BCD process platform, while TSMC plans to reduce its 8-inch capacity and raise prices for sub-5nm nodes starting January 2026. Analysts predict that HV-CMOS will be the next target for price increases as demand for BCD continues to grow.
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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.
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