Major Foundry Pricing Uptick Expected in H2 2026 for Mature Node Wafers
Leading foundries TSMC, Samsung Foundry, and SMIC are signaling a firming of wafer pricing for mature nodes, with potential increases in the second half of 2026. This comes as demand for legacy chips used in automotive, industrial, and IoT sectors continues to recover.
The global semiconductor foundry market is bracing for an upward adjustment in pricing for mature process nodes, specifically 28nm and above, in the latter half of 2026. Major players like TSMC, Samsung Foundry, and SMIC have reportedly begun discussions with key clients regarding revised pricing structures. This shift marks a departure from the competitive pricing environment observed in early 2026, driven by a healthier demand outlook from various sectors.
Automotive, industrial equipment, and certain segments of the consumer IoT market are showing robust recovery, leading to increased order volumes for power management ICs, microcontrollers, and sensors manufactured on these mature nodes. Foundries, having experienced periods of underutilization in recent quarters, are now operating at higher capacities. This improved utilization, coupled with ongoing inflationary pressures on raw materials and operational costs, provides the impetus for the anticipated price hikes.
While the exact percentage of the increase remains under negotiation, industry analysts suggest a potential average rise of 3-7% across various mature node processes. Procurement managers are advised to engage proactively with their foundry partners to secure favorable terms and minimize the impact on Bill of Materials (BoM) costs. Long-term supply agreements and strategic partnerships are likely to gain renewed importance in mitigating potential price volatility.
SMIC, in particular, is expected to leverage its strong domestic demand and recent capacity expansions to solidify its pricing strategy for its established nodes. TSMC and Samsung Foundry, while also focusing on advanced processes, maintain significant mature node capacities that are now seeing renewed profitability. This broad-based pricing adjustment indicates a more balanced supply-demand dynamic emerging in the mature node segment of the semiconductor industry, moving away from the oversupply conditions that characterized much of 2025.