According to relevant media reports, in the case of supply shortage,$Taiwan Semiconductor (TSM.US)$Taiwan Semiconductor will raise prices for 3nm and 5nm advanced processes and advanced packaging. Among them, the 3nm foundry quote of Taiwan Semiconductor may rise by more than 5%, and the annual quote for advanced packaging will increase by 10%-20% next year.

It is worth noting that this wave of price increases has begun to spread downstream to the industrial chain. According to the supply chain news,$Qualcomm (QCOM.US)$Qualcomm's Snapdragon 8 Gen 4 is built using Taiwan Semiconductor's N3E process, and the quote for this generation has increased by 25% compared to the previous one, which may lead to further price increases. According to wccftech, it's not just Qualcomm that is raising prices,$NVIDIA (NVDA.US)$, $Advanced Micro Devices (AMD.US)$also plans to raise the prices of hot AI hardware.

According to institutions tracking the industry, the adjustment of wafer processing prices has spread to power semiconductor manufacturers, and since this year, power semiconductor manufacturers have seen a wave of price hikes. Among them, Sanan Optoelectronics raised the price of its entire series of products by 10%-20%, Lianchuang Electronics raised the price of its entire series of products by 10%-18%, HighGrid Micro raised the price of its entire product line by 10%-20%, and Jiejie Micro raised the price of its TrenchMOS by 5%-10%.

"In the second half of the year, it can't be said that there is a supply shortage, but at least it will be in a good supply and demand state," said Zhao Qi, CEO of ChipLink Integration, in a recent interview.

The semiconductor industry, which has been quiet for some time, has recently become lively with news of TSMC raising prices for advanced processes and packaging for 3nm and 5nm. Institutions predict that Hua Hong Semiconductor may raise prices by 10% in the second half of the year, ending a two-year decline.

It should be noted that the trend of consolidation in wafer foundries has shown signs of convergence.

Although wafer foundry price increases have not yet become definite facts, the utilization rates of major wafer foundries have already significantly improved, with many manufacturers reaching full capacity or even more than 100%. In the industry's view, the sustained improvement in wafer foundry utilization rates and the full capacity of some foundries will bring price elasticity in the future.

GTJA has released research reports stating that the semiconductor cycle has hit the bottom and demand is gradually picking up, with various explosive products emerging. Apple is leading the way in AI edge computing and opening up new growth opportunities. China's semiconductor industry is accelerating technological innovation, and high investment in research and development is gradually bearing fruit, expected to benefit deeply from the new wave of technological cycles.

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$HUA HONG SEMI (01347.HK)$, $SMIC (00981.HK)$, $SHANGHAI FUDAN (01385.HK)$, $TIMES ELECTRIC (03898.HK)$

Editor / jayden