Semiconductor Inflation Trend Takes Shape: Wafer Foundries and IC Design Firms Raise Prices
The semiconductor industry is facing an inflationary trend, with wafer foundries and IC design companies raising prices in response to soaring costs. This price surge is expected to impact consumer product markets like smartphones, potentially leading to a decline in shipments this year.
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- 📰 Published: May 1, 2026 at 10:11
- 🔍 Collected: May 1, 2026 at 10:31 (20 min after Published)
- 🤖 AI Analyzed: May 2, 2026 at 07:24 (20h 53m after Collected)
Central News Agency
(Central News Agency reporter Chang Chien-chung, Hsinchu, 1st) A semiconductor inflation trend is taking shape. In response to soaring costs, wafer foundries and IC design companies have successively raised prices. The impact on consumer product markets such as smartphones is gradually becoming apparent, and smartphone shipments this year may face pressure to decline.
Semiconductor companies are holding investor conferences, and cost pressures and product pricing strategies have become a focus of attention for institutional investors. In addition to continuous investment in technology development and capacity expansion by wafer foundries, tensions in the Middle East have also caused energy and logistics costs to rise.
Wafer foundry Powerchip Semiconductor (6770) already took the lead in raising prices for driver IC and sensor foundry services in January this year, and for power component foundry services in March. Vanguard International Semiconductor (5347) followed suit in April by raising foundry prices, and United Microelectronics Corporation (2303) also notified customers in April that it would adjust prices in the second half of the year.
Not only are wafer foundry prices rising, but there are also reports of price increases for back-end packaging and testing. IC design companies have successively decided to raise product prices to mitigate the impact of rising costs. EGM Devices (6202) notified customers in March, and MediaTek (2454) revealed that it aims to maintain its full-year gross profit margin between 44.5% and 47.5% through a rigorous pricing strategy.
Observing the current overall market situation, it still presents a mixed picture. Demand in the AI-related market remains strong, while demand in the consumer electronics market is relatively weak. IC design companies do not intend to raise product prices across the board.
Artichoke-KY (6907) believes that the recent wave of price increases in the microcontroller (MCU) market is not driven by strong demand from the end market, but rather by strong AI demand occupying capacity and rising raw material prices. Artichoke-KY will only moderately raise prices to strive for stable gross profit margins.
EGM Devices believes that the current economic situation has not improved, and demand is only stable. In response to wafer foundry and packaging and testing price increases of 10% to 15%, EGM Devices will only raise prices for low-margin products, hoping to restore gross profit margins to a reasonable level.
Following the surge in memory prices, wafer foundries and IC design companies have successively raised prices, forming a semiconductor inflation trend, which further intensifies the pressure of rising costs on consumer products such as smartphones. In addition to manufacturers concentrating resources on high-end products, demand has also begun to slow down. MediaTek estimates that mobile phone shipments will decrease by 15% this year. The market is closely watching whether the impact of price increases on market demand will further expand in the future. (Editors: Chang Liang-chih, Wan Shu-chang) 1150501
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(Central News Agency reporter Chang Chien-chung, Hsinchu, 1st) A semiconductor inflation trend is taking shape. In response to soaring costs, wafer foundries and IC design companies have successively raised prices. The impact on consumer product markets such as smartphones is gradually becoming apparent, and smartphone shipments this year may face pressure to decline.
Semiconductor companies are holding investor conferences, and cost pressures and product pricing strategies have become a focus of attention for institutional investors. In addition to continuous investment in technology development and capacity expansion by wafer foundries, tensions in the Middle East have also caused energy and logistics costs to rise.
Wafer foundry Powerchip Semiconductor (6770) already took the lead in raising prices for driver IC and sensor foundry services in January this year, and for power component foundry services in March. Vanguard International Semiconductor (5347) followed suit in April by raising foundry prices, and United Microelectronics Corporation (2303) also notified customers in April that it would adjust prices in the second half of the year.
Not only are wafer foundry prices rising, but there are also reports of price increases for back-end packaging and testing. IC design companies have successively decided to raise product prices to mitigate the impact of rising costs. EGM Devices (6202) notified customers in March, and MediaTek (2454) revealed that it aims to maintain its full-year gross profit margin between 44.5% and 47.5% through a rigorous pricing strategy.
Observing the current overall market situation, it still presents a mixed picture. Demand in the AI-related market remains strong, while demand in the consumer electronics market is relatively weak. IC design companies do not intend to raise product prices across the board.
Artichoke-KY (6907) believes that the recent wave of price increases in the microcontroller (MCU) market is not driven by strong demand from the end market, but rather by strong AI demand occupying capacity and rising raw material prices. Artichoke-KY will only moderately raise prices to strive for stable gross profit margins.
EGM Devices believes that the current economic situation has not improved, and demand is only stable. In response to wafer foundry and packaging and testing price increases of 10% to 15%, EGM Devices will only raise prices for low-margin products, hoping to restore gross profit margins to a reasonable level.
Following the surge in memory prices, wafer foundries and IC design companies have successively raised prices, forming a semiconductor inflation trend, which further intensifies the pressure of rising costs on consumer products such as smartphones. In addition to manufacturers concentrating resources on high-end products, demand has also begun to slow down. MediaTek estimates that mobile phone shipments will decrease by 15% this year. The market is closely watching whether the impact of price increases on market demand will further expand in the future. (Editors: Chang Liang-chih, Wan Shu-chang) 1150501
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The text, pictures, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.