SMIC has implemented price increases on some production capacities, with an increase of approximately 10%
SMIC is expected to raise prices for some production capacity by about 10% soon. The reasons for the price increase include the growth in demand for mobile applications and AI, as well as rising raw material costs. In addition, TSMC's consolidation of 8-inch capacity and plans to shut down some production lines by the end of 2027 have also triggered price increase expectations. SMIC and Hua Hong's capacity utilization rates are close to full load
According to multiple sources, SMIC has implemented price increases on some of its production capacity, with an increase of about 10%. Some companies have reported that the price hikes are expected to be executed soon. However, due to previously low prices for storage products, wafer fabs had already taken the lead in raising prices. "The continuous growth in demand for mobile applications and AI has driven the demand for chips, thereby boosting the overall demand for semiconductor products." Regarding the reasons for SMIC's price increase, semiconductor industry insiders interpret that rising raw material prices are also a contributing factor. In addition, TSMC has confirmed the consolidation of its 8-inch capacity and plans to shut down some production lines by the end of 2027, which may also trigger expectations of price increases among wafer fabs. In fact, due to strong demand, the capacity utilization rates of SMIC and Hua Hong have continued to rise and are approaching or exceeding full capacity. (Shanghai Securities News)
Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk
