Taiwan foundries including TSMC, UMC, Vanguard, and PSMC are raising prices amid tight capacity, with increases set to extend into 2027.

Key Highlights

• TSMC Advanced Nodes: 3nm capacity remains severely constrained; 2H26 price hikes deferred but stacked into 1Q27, resulting in a sharper-than-expected increase; Fab15A upgrade to impact 28/22nm supply from 2027.
• UMC Mature Nodes: 2H26 hikes are selective—existing large customers largely shielded; unsigned customers and Singapore orders see modest increases; broad-based hike planned for 1Q27 with notably larger targets.
• Vanguard 8-inch: Two price hikes in 1H26 take effect in 3Q26; capacity remains tight into 2H26 with potential further hikes at a more moderate pace; Renesas LTA negotiations ongoing, a deal would support 2027 utilization.
• PSMC 12-inch: Logic capacity squeezed by HBM back-end outsourcing ramp; second-round price hike set for 3Q26 across all customers; risk of quarterly sequential increases if tightness persists.

Table of Contents

1. Introduction
2. TSMC and Samsung Benefited from High Order Visibility for Advanced Nodes That Are Used to Manufacture AI Chips; Capacity Utilization and Pricing Provided Tailwinds for Operations
3. Nexchip Achieved All-Time Best Record by Climbing to 8th Spot in 1Q26 under Operating Growth from Order Pulls of TV and NB Supply Chains
   • 1Q26 Revenue Ranking among Top 10 Global Foundries

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