Institutions: The increase in AI-related power demand and the reduction in production by major factories are driving up the prices of 8-inch foundry services.

According to the TrendForce consulting survey, there has been a change in the supply-demand pattern of the eight-inch wafer market recently: against the backdrop of gradual reduction in production by Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung, the demand for AI-related Power ICs is steadily growing. In addition, concerns about the increase in IC costs in the second half of the year and capacity constraints have led to early stockpiling by consumers. Apart from the eight-inch wafer fabs in mainland China, which have already increased their capacity utilization rates to a high level since 2025, other regional players have also received orders for 2026, leading to an increase in capacity utilization rates and prompting foundries to actively consider raising prices. TSMC has begun to gradually reduce its eight-inch capacity since 2025 with the goal of completely ceasing production in some of its fabs by 2027. Samsung has also started reducing its eight-inch production in 2025, with a more proactive attitude. TrendForce consulting predicts that global eight-inch capacity will decrease by around 0.3% in 2025, leading to negative growth. Despite plans for small expansions by companies like SMIC and UMC in 2026, they will not be able to offset the scale of reduction by the two major fabs, resulting in an estimated capacity reduction rate of 2.4%. Some wafer fabs anticipate that the eight-inch capacity in 2026 will become tight, and have informed customers of a possible increase in foundry prices ranging from 5% to 20%.