Foundry price hikes are extending to mature processes, with Vanguard International Semiconductor (VIS), a TSMC affiliate, and Chinese rival SMIC notifying customers of increases. These hikes focus on the 8-inch BCD (Bipolar-CMOS-DMOS) process. Prices are averaging increases of around 10%.
Surging demand for power-management chips drives the increases. These components are essential for AI servers and related infrastructure. This demand consumes a significant portion of current BCD capacity.
Supply constraints exacerbate the situation. TSMC is scaling back its 8-inch capacity to prioritize advanced nodes. This strategy creates a supply gap in the mature-process market, putting upward pressure on pricing.