Rumor
Vanguard International Semiconductor increases 8-inch wafer prices due to AI data center power component demand
Tuesday, January 13, 2026 at 10:24 PM
Strong demand for high-voltage power components driven by AI data center transitions to High-Voltage Direct Current is straining 8-inch wafer capacity. Taiwan’s Vanguard International Semiconductor has reportedly increased prices by 4% to 8% for certain chips, with potential for a second round of price hikes.
Context
MediaTek and power management IC (PMIC) designers are preparing for price hikes to offset surging production costs across the semiconductor supply chain. This shift is driven by a capacity squeeze where packaging and testing firms, including ASE Technology, are raising rates by 8% to 15%, with some segments seeing spikes of 20%. Additionally, Chinese foundry SMIC has reportedly increased prices by 10%. These adjustments reflect rising raw material costs and explosive demand for AI and high-performance computing infrastructure, which has exhausted existing capacity.
The pricing trend will likely materialize following the Lunar New Year. Key players like Silicon Power, Chicony, and Fenghua Advanced Technology are positioned to follow MediaTek in adjusting quotes to protect gross margins. While existing contracts may remain stable, new orders and high-priority products will see reduced volume discounts. This strategic repricing signals a shift toward margin preservation as the industry navigates a capacity-constrained environment shaped by the global AI boom.
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