VIS Plans 15% Price Hike for Mature Nodes

Industry sources suggest that Vanguard International Semiconductor Corporation (VIS) may increase foundry prices for select mature-node products by up to 15%, starting this April, as its production capacity remains fully utilized. VIS declined to comment on the rumors yesterday (Feb 9), but at a recent earnings call, the company highlighted tightening supply and stronger demand, signaling a potential industry-wide price adjustment. Observers expect UMC and Powerchip could follow suit, marking a major push for mature-node foundries.

The supply chain notes that AI servers and high-performance computing (HPC) equipment are driving rapid increases in power consumption, boosting demand for power management ICs, driver ICs, and power components. Most of these products are still produced on 8-inch mature processes, keeping VIS's capacity utilization at high levels. Rising materials and equipment costs, along with expansion investments, have prompted mature-node foundries to renegotiate prices with clients. Analysts believe a second price adjustment by VIS could improve gross margins and strengthen its negotiating position in the 8-inch wafer market.

VIS previously emphasized that AI applications and investment momentum remain clear, while inventory corrections in commercial, industrial, and automotive segments are stabilizing demand. The company also noted that advanced-node production continues to squeeze mature-node capacity, creating structural constraints on supply. Price adjustments are being implemented cautiously within long-term customer frameworks to gradually reflect investment and capacity expansion costs.

Powerchip recently indicated that demand for power management ICs and related power components is rising due to AI server growth, and that some 8-inch cleanrooms are being repurposed for advanced packaging, limiting capacity. The company plans to increase 8-inch wafer prices in March. UMC, meanwhile, has not raised prices significantly but stressed disciplined pricing strategies, ongoing product portfolio optimization, and expectations for steady profits. UMC forecasts 1–3% moderate growth in the mature-node market for 2026.

Industry analysts expect that if VIS initiates a new round of price hikes, UMC and Powerchip are likely to follow, potentially creating an upward pricing cycle for mature-node foundries and strengthening operations across the sector.