IC designers weigh a second round of price hikes in early 2027 as foundry costs climb

IC designers are preparing for another round of price increases as wafer foundry and backend manufacturing costs continue to rise, according to ABMedia, citing Economic Daily News. Suppliers of power management ICs, display driver ICs, and microcontrollers are reportedly assessing price adjustments ranging from 5% to the double-digit percentage range, with timing centered on late 2026 to early 2027. The report ties that move to broader pricing pressure across the semiconductor supply chain. Taiwan Semiconductor Manufacturing Co. (TSMC) is said to be planning price increases from January 2027, with mature-node hikes estimated at 3% to 10%. South Korean outlet Digital Daily also reported that TSMC had decided to raise 2 nm wafer prices by another 6% to 8% in the first quarter of 2027, citing higher manufacturing costs and surging electricity expenses. Earlier customer feedback had pointed to increases of 10% to as much as 20%. TrendForce had also reported that 12-inch wafer prices were heading higher in 2027, with long-term contract pricing reportedly up by 15% to more than 40% as AI demand tightened supply. At the same time, IC design companies said recent order growth should not be read as a broad recovery in end demand. Some customers have started placing orders early, driven by concerns over conflict in the Middle East and by AI demand crowding out capacity. Suppliers are now comparing order volumes with the same period last year to gauge the risk of over-ordering and to avoid another build-up in inventories.