[News] SMIC Reportedly Raises Prices by 10%, Memory Products Lead the Way

Memory is not the only segment seeing price momentum. China’s leading foundry, SMIC, has increased prices for certain production lines by around 10%, according to local outlet Security Times.

Notably, while the increases are expected to take effect shortly, some sources cited by the report noted that pricing adjustments had already begun earlier in areas such as memory, where prices had previously fallen to unusually low levels — prompting suppliers to move first.

Industry insiders cited by the report attributed SMIC’s move to sustained growth in smartphone and AI applications, which has increased chipset procurement and boosted overall semiconductor demand. Rising raw material costs were also cited as a contributing factor, the report adds.

Against this backdrop, the Security Times notes that TSMC has confirmed plans to consolidate its 8-inch capacity and to shut down some production lines by the end of 2027 — a step that could further tighten supply and reinforce expectations of broader price increases across the foundry sector.

According to Mirror Media, TSMC has so far this year sold used equipment to its affiliate, Vanguard International Semiconductor (VIS), on two occasions — in May and again in November — for a combined disposal value of about NT$2.9 billion. The report also notes that amid intensifying competition from Chinese rivals in mature process nodes, a growing number of production lines at TSMC’s legacy 8-inch fabs have been left idle.

High Capacity Utilization Supports Growth

Notably, Securities Times reported that amid strong demand, capacity utilization at China’s leading foundries has continued to climb, now approaching — or even surpassing — full capacity. SMIC’s latest earnings report shows its utilization rate rising to 95.8% in the third quarter, up from 92.5% in the second quarter.

On the other hand, China’s second largest foundry, Hua Hong Semiconductor, reported an overall capacity utilization rate of 109.5% in the third quarter, up 1.2 percentage points from the previous quarter, according to Security Times.

The report notes that Hua Hong’s three 8-inch fabs have maintained consistently high capacity utilization. At its first 12-inch fab, with a nominal capacity of 95,000 wafers, monthly wafer starts have reportedly continued to exceed 100,000. At another 12-inch fab still ramping up, the report suggests phase capacity is just over 40,000 wafers, with wafer starts already above 35,000. The company expects the facility to reach full capacity by the third quarter of next year, the report adds.

According to TrendForce, Chinese foundries have been broadening their reach through supply-chain diversification. SMIC secured the third spot in global foundry sales in 3Q25 with a 5.1% share, trailing only TSMC and Samsung, while Huahong placed sixth with a 2.6% market share.

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(Photo credit: SMIC)