2026 8-inch Foundry: Cuts & AI Fuel Price Hikes

Last Modified

2026-01-09

Update Frequency

Aperiodically

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PDF

Driven by accelerated 8-inch capacity cuts by TSMC and Samsung, coupled with rising demand for AI power components and panic stocking across the supply chain, the global supply-demand structure for 8-inch wafers is tightening. This significant rebound in utilization rates has prompted major Chinese, Korean, and Taiwanese foundries to initiate price hike strategies.

Key Highlights

Capacity Reduction: Major players like TSMC and Samsung are aggressively cutting 8-inch capacity, causing global total capacity to enter negative growth.
Strong Demand: Continuous growth in AI power ICs and strategic stocking by the PC supply chain are significantly lifting utilization rates.
Initiating Price Hikes: In response to tightening supply and demand, foundries including SMIC, Vanguard, and Samsung are preparing to raise prices. These hikes cover various processes and customers, with the upward trend expected to continue through 2026.

Introduction
Global 8” Capacity to Decline in 2026 as TSMC and Samsung Accelerate Production Cuts
- Changes to Global 8” Capacity (2023-2027F)
Average 8” Capacity Utilization Expected to Rebound in 2026; Fully-Loaded Foundries Plan Broad Price Increases
- Changes in the World's Major 8” Wafer Foundries' Capacity Utilization Rates, 2025-2026

Changes to Global 8” Capacity (2023-2027F)