Reports indicate that the burgeoning demand for artificial intelligence (AI) is fueling robust growth in the advanced semiconductor process market. Concurrently, there's a significant uptick in demand for mature process chips, including power management integrated circuits (ICs), microcontrollers, sensors, and metal-oxide-semiconductor field-effect transistors (MOSFETs). Owing to Taiwan Semiconductor Manufacturing Company (TSMC)'s decision to scale back capacity for certain mature processes, orders have flooded over to other foundries, notably United Microelectronics Corporation (UMC), Powerchip Semiconductor Manufacturing Corp., and Vanguard International Semiconductor Corporation. This influx has led to a substantial rise in capacity utilization rates for these manufacturers, creating a scenario where demand far outstrips supply.

UMC has already unveiled plans to implement price increases. Meanwhile, quotes from Powerchip Semiconductor Manufacturing Corp. are poised to skyrocket by 40%. Both companies have recently affirmed robust order conditions. UMC has further stated that should the current market supply and demand dynamics persist, the price hike for wafer foundry services next year will surpass that observed in the latter half of this year.