According to multiple media reports, Semiconductor Manufacturing International Corporation (SMIC) has recently implemented price increases of approximately 10% for some of its production capacity. Several companies have already received price adjustment notices from SMIC, and feedback from these companies indicates that the new pricing is expected to take effect soon.
"Continued growth in demand for smartphone applications and artificial intelligence has driven up demand for chipset solutions, thereby fueling overall semiconductor product demand," explained an industry insider regarding the reasons behind SMIC's price adjustments. Rising raw material costs were also cited as a contributing factor. Additionally, TSMC's decision to consolidate its 8-inch production capacity and plan the shutdown of certain production lines by the end of 2027 has fueled expectations of price increases among wafer fabs.
It is understood that SMIC's price adjustments follow an industry-wide trend. During a conference call in August of this year, SMIC's management explicitly stated that the company would "not be the first to raise prices in the industry but would follow comparable peers in adjusting prices." Now, with capacity adjustments by leading companies such as TSMC, the price increases are being implemented.
Reports indicate that strong demand has led to continuously rising capacity utilization rates at SMIC, with operations nearing or exceeding full capacity.