8-Inch Wafer Foundries Set for Price Hike

According to TrendForce, the global supply-demand landscape for 8-inch wafers is undergoing significant changes, with rising foundry prices likely to impact non-core 8-inch wafer segments. As TSMC and Samsung gradually cut production, growing demand for AI-related power ICs is driving consumer electronics manufacturers to stock up early in anticipation of higher IC costs in the second half of the year.

On the supply side, TSMC plans to gradually reduce 8-inch wafer capacity starting in 2025, with some fabs expected to fully shut down by 2027. Samsung will also cut production from 2025, with a more aggressive approach. As a result, global 8-inch wafer capacity is projected to decline by around 0.3% in 2025, entering negative growth. Even though some manufacturers, such as UMC, plan modest capacity expansions in 2026, these increases are unlikely to offset reductions from the two major players, with annual capacity decline expected to widen to 2.4%.

On the demand side, AI server power IC orders are surging, supported by growing local IC demand in China. Some manufacturers' 8-inch wafer utilization rates have significantly improved since mid-2025, pushing foundry prices up, with adjustments taking effect in the second half of the year. Once Chinese foundries reach full capacity, excess orders are also benefiting Korean fabs.

Looking ahead to 2026, rising computing power and power efficiency requirements from AI servers and edge AI applications will further drive demand for power management ICs, helping maintain high 8-inch wafer utilization. Meanwhile, PC and notebook supply chains, concerned that AI server IC demand may squeeze available 8-inch capacity, have begun pre-stocking power ICs and related components.

TrendForce notes that these factors are expected to keep 8-inch wafer utilization high at Chinese and Korean Tier-2 fabs, while other regions will also see noticeable improvements. Global 8-inch average utilization is projected to rise to 85–90% in 2026, up from 75–80% in 2025. Some fabs, optimistic about tightening 8-inch supply, have informed clients of potential foundry price increases of 5–20%. However, actual price growth may be limited due to uncertainties in consumer demand and rising costs from memory and advanced-node ICs.