[News] UMC Set to Hike Prices in 2H26, Pricing Tied to Mix, Capacity and Long-Term Deals
While TSMC has signaled exceptionally strong demand for 3nm and a further reduction in mature-node output at its earnings call, another Taiwanese foundry is moving in the same direction amid tightening supply conditions. According to TechNews, citing a client notice, United Microelectronics Corporation plans to implement wafer price adjustments in the second half of 2026.
While the exact scope of the increase has not been disclosed, earlier Liberty Times reporting suggested a roughly 10% hike could take effect as soon as July.
The client notice indicates that with 1H26 well underway, demand remains resilient across communications, industrial, consumer, and AI-related segments, further tightening capacity across UMC’s portfolio. While the foundry continues to improve manufacturing efficiency, rising input costs—including raw materials, energy, and logistics—are adding pressure to sustain long-term operational efficiency and service commitments, ultimately underpinning the company’s planned price adjustments.
TechNews, citing the notice, reports that the specific pricing adjustment magnitude will be determined based on three key factors: UMC’s product mix strategy, capacity agreements, and long-term partnerships with individual customers.
UMC is not the only mature-node foundry moving to raise prices. Liberty Times notes that Vanguard International Semiconductor, an affiliate of TSMC, has lifted mature-node pricing starting in April. Commercial Times, citing institutional investors, reports that VIS issued price adjustment notices to customers in March, raising foundry prices by around 10% starting April 1.
Separately, market rumors suggest UMC has secured orders from Asian customers for SLC and MLC flash memory manufacturing, a move expected to further lift overall fab utilization, Liberty Times adds.
TSMC Scales down Mature Node Output
The tightening supply for mature nodes is partly driven by TSMC’s move to cutting down output towards the transition to advanced nodes below 7nm. Chairman C.C. Wei, cited by the Economic Daily News, said at the April 16 earnings call that TSMC will gradually scale down Fab 2 (6-inch) and Fab 5 (8-inch GaN), reallocating space to advanced applications, while continuing to optimize its mature-node mix toward higher-value and strategic markets to support customer demand growth.
According to TrendForce, TSMC formally began phasing down 8-inch capacity in 2025, with plans to fully shut down some fabs by 2027. Likewise, Samsung also initiated 8-inch capacity reductions in 2025, adopting an even more aggressive stance.
With expectations that 8-inch capacity will tighten in 2026, some foundries have notified customers of planned price increases ranging from 5% to 20%, according to TrendForce. TrendForce notes that, unlike in 2025, when price adjustments were limited to certain legacy nodes or platforms, this round of increases would apply broadly across customers and process platforms.
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[News] UMC, VIS, PSMC Reportedly Eye Mature-Node Price Hikes Up to 10% From Apr.; IC Costs May Rise- Rising AI-Driven Demand for Power ICs and Capacity Cuts Fuels Potential 8-Inch Foundry Price Hikes, Says TrendForce
(Photo credit: UMC)
