Recently, the semiconductor industry has seen a ripple effect of price hikes, flowing from downstream sectors to upstream components. Semiconductor silicon wafers, essential for chip fabrication, have undergone their first universal price increase across all sizes in three years. The prices of 6-inch, 8-inch, and 12-inch silicon wafers have undergone comprehensive adjustments, indicating a notable transformation in the industry's supply-demand dynamics. Fueled by the triple impact of surging demand for AI computing power, escalating costs throughout the supply chain, and geopolitical tensions, this round of price hikes is characterized by its comprehensive coverage across all categories, multiple rounds of increases, and varied percentage hikes. Memory chips, in particular, have witnessed significant price surges, with Samsung's NAND Flash prices soaring by over 100% and DRAM prices climbing by 60%-70%. Analog chips and MCUs have also seen substantial price hikes, with products like Texas Instruments' digital isolators and power management ICs experiencing price increases of up to 85%. Concurrently, categories such as power semiconductors, passive components, and wafer foundry services have also followed the trend with price increases. Amidst the wave of silicon wafer price hikes, 12-inch silicon wafers have taken the lead due to the demand for AI computing power. Prices for conventional silicon wafers have risen by 5%-8%, while high-end specialized silicon wafers tailored for AI/HPC scenarios have seen price increases of 18%-22%. In contrast, 8-inch and 6-inch silicon wafers have experienced delayed price increases, attributed to the recovery in demand for automotive and industrial power chips. Leading global silicon wafer manufacturers, including Shin-Etsu Chemical, SUMCO, and GlobalWafers, have already initiated their second round of price hikes this year, with domestic manufacturers such as LiOn Microelectronics and Meide Electronics following suit. This round of price hikes is not merely a short-term market fluctuation but rather a result of the interplay of multiple factors, including demand, supply, and costs. It is anticipated that the upward price trend will persist, with related benefits gradually materializing in the latter half of this year and the first half of next year.
