PSMC Hikes DRAM Prices 45%

According to Powerchip Semiconductor Manufacturing Corp. (PSMC), the company has raised DRAM wafer processing prices by approximately 40% to 45% in July, while increasing 8-inch and 12-inch mature-node foundry prices by around 10% to 15%, as strong AI demand continues to tighten supply and demand conditions across the memory and semiconductor manufacturing markets. The company expects the pricing adjustments to gradually contribute to revenue and profitability from November, with more visible benefits in the fourth quarter.

PSMC President Chih Hsien-Kuo said that the rapid expansion of AI computing demand has prompted major global cloud service providers (CSPs) to secure DRAM capacity several years in advance. Combined with strong financial performances from leading memory manufacturers, these developments indicate that the overall memory market remains healthy. PSMC expects DRAM supply constraints to continue through 2027.

In response to changing market conditions, PSMC implemented another DRAM wafer processing price increase in July, with adjustments ranging from 40% to 45%. However, due to the time required for wafer production, shipment schedules, and customer settlement processes, the impact will not be immediately reflected in financial results. The company expects the price increases to gradually improve revenue and earnings beginning in November, with stronger contributions expected in the fourth quarter.

Regarding process technology development, PSMC’s internally developed 1X DRAM process entered limited production in June and is currently undergoing yield improvement and customer validation. Meanwhile, the company’s 1P DRAM process developed in collaboration with Micron Technology is expected to complete equipment installation in the first quarter of next year, with mass production targeted for mid-2028. These efforts are aimed at advancing DRAM technology toward more competitive process nodes.

Beyond DRAM, the Flash memory market is also benefiting from AI-driven demand growth. PSMC noted that rising demand for AI servers and AI-enabled devices has pushed up prices in the SLC NAND market, while NOR Flash has also seen improved demand and pricing conditions due to supply structure adjustments.

PSMC’s monthly NOR Flash wafer input volume has exceeded 10,000 wafers, and the company continues to expand customer orders. It plans to introduce more cost-efficient 20nm processes and next-generation products to strengthen competitiveness and improve profitability.

In the logic foundry segment, demand for mature process technologies remains strong. PSMC reported that its third-quarter book-to-bill ratio reached 1.4, indicating customer demand significantly exceeds currently available capacity. The company has also increased 8-inch and 12-inch wafer foundry pricing by 10% to 15% since July, with AI servers, automotive electronics, and power management ICs emerging as the strongest demand drivers. Customers continue to request additional wafer capacity allocation.

PSMC expects mature-node foundry capacity to remain tight amid sustained demand for AI servers, memory products, and automotive semiconductors. The company believes further price adjustments may be possible in the second half of the year. Moving forward, PSMC will continue optimizing its product portfolio, increasing the proportion of AI-related, automotive, and high-value memory products to improve capacity utilization and overall profitability.