The next chip price hike isn't memory—it's the cheap parts sitting next to it.
Economic Daily reports foundries and packaging houses are weighing higher quotes. Power chips, display drivers, and small controllers are lining up a second wave from late this year into early next year. Talk is 5% to double digits. No design house has confirmed a 2027 hike publicly.
$TSM prices are set to rise from January. Mature processes: 3% to 10%. Wafer cost is the biggest slice of a chip's bill, so a foundry move hits fast. Packaging adds more.
One unnamed foundry told the market next year's quote could rise more than 20%. That's so large the Street expects at least two steps, so buyers don't walk. Two other foundries are also expected to raise by a felt amount. Names that could follow if someone moves first: Novatek, Sitronix, FocalTech, AAT, GMT, Silergy, Holtek.
$TSM said it doesn't comment on price and sets quotes by strategy, not by one-off chance. UMC, Vanguard, and PSMC also declined to comment.
Design houses are stuck in the middle. Foundry cost is up. End buyers may refuse the next round. One controller firm said big customers on long orders already settled next year's price and won't be in the new wave. They care more about getting parts on time.
A rumor of a hike is not a new invoice.
If mature wafers rise 3% to 10% in January and one foundry wants 20%, do the small-chip houses pass it through—or do phone and PC buyers stop the second wave?
Economic Daily reports foundries and packaging houses are weighing higher quotes. Power chips, display drivers, and small controllers are lining up a second wave from late this year into early next year. Talk is 5% to double digits. No design house has confirmed a 2027 hike publicly.
$TSM prices are set to rise from January. Mature processes: 3% to 10%. Wafer cost is the biggest slice of a chip's bill, so a foundry move hits fast. Packaging adds more.
One unnamed foundry told the market next year's quote could rise more than 20%. That's so large the Street expects at least two steps, so buyers don't walk. Two other foundries are also expected to raise by a felt amount. Names that could follow if someone moves first: Novatek, Sitronix, FocalTech, AAT, GMT, Silergy, Holtek.
$TSM said it doesn't comment on price and sets quotes by strategy, not by one-off chance. UMC, Vanguard, and PSMC also declined to comment.
Design houses are stuck in the middle. Foundry cost is up. End buyers may refuse the next round. One controller firm said big customers on long orders already settled next year's price and won't be in the new wave. They care more about getting parts on time.
A rumor of a hike is not a new invoice.
If mature wafers rise 3% to 10% in January and one foundry wants 20%, do the small-chip houses pass it through—or do phone and PC buyers stop the second wave?
