(C) Astute Group
Overview: A Perfect Storm in the Legacy Node Market
The global semiconductor supply chain is facing a new wave of inflationary pressure. Following the recent price hikes in memory chips, the cost of Power Management Integrated Circuits (PMICs)—essential components for Artificial Intelligence (AI) servers and Electric Vehicles (EVs)—is rising rapidly. This trend is driven by a complex interplay of explosive AI demand, a tightening supply of mature production nodes (8-inch and 12-inch legacy wafers), and a sharp increase in raw material costs.
The Domino Effect: Global Foundries Announce Hikes
According to industry sources on March 18, major global foundries specializing in mature processes, including UMC, VIS, and PSMC, are planning to implement price increases of approximately 10% starting next month.
Vanguard International Semiconductor (VIS): Expected to adjust prices by 4% to 10% effective April.
Nexchip: China’s third-largest foundry has officially notified customers of a 10% across-the-board increase for all wafers starting in June.
SMIC and Hua Hong: These Chinese giants signaled additional price adjustments late last year, which are now coming into full effect.
Western semiconductor powerhouses are following suit. Texas Instruments (TI) is reportedly applying price hikes of up to 85% on PMICs and digital isolators starting in April. During the same period, Germany’s Infineon is expected to raise prices for power switches and related chip products by 5% to 15%.
The "Balloon Effect" of Advanced vs. Mature Nodes
The root of the supply crunch lies in a strategic shift by industry leaders. While giants like TSMC and Samsung Electronics have focused their capital expenditures on sub-5nm and 3nm "bleeding-edge" nodes for high-performance AI processors and High Bandwidth Memory (HBM), the "mature" nodes (legacy lines) have seen relatively stagnant investment.
However, the massive expansion of AI data centers has created an insatiable need for high-capacity power supplies. To manage this power, PMICs and power semiconductors are indispensable. With legacy production lines already scaled back, the surge in demand has pushed utilization rates to 85–90%, leaving almost no buffer for additional orders.
Raw Material Volatility and Geopolitical Risks
Production costs are also being squeezed by external macro factors. Rising tensions in the Middle East and ongoing US-China trade frictions have led to a spike in the prices of critical raw materials such as copper, aluminum, and palladium.
As lead times lengthen and market volatility increases, foundries are no longer absorbing these costs. Instead, they are passing the burden onto downstream customers to protect their own margins in an increasingly expensive production environment.
The "New Normal" for the Supply Chain
The consensus among experts is that this supply-tightening and price-hiking trend will persist throughout 2026. The structural growth of the AI ecosystem, coupled with the recovery of the EV and Edge AI sectors, ensures that mature node capacity will remain tight.
"As long as high-value demand centered on AI and EVs continues, we will see an indirect impact on the pricing of consumer electronics, automobiles, and industrial equipment," noted an industry insider. "This high-cost environment is becoming the 'New Normal' for the semiconductor supply chain."
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