Taiwan’s 8-inch wafer shortage sparks investor bets on semiconductor price hikes
Investor confidence in Taiwan’s mature-node semiconductor sector is growing. Recent investments by global firms have strengthened expectations of stable capacity and stronger pricing power. This optimism is particularly focused on 8-inch wafer production, where supply constraints are becoming more apparent.
Utilisation rates at 8-inch foundries have been climbing, yet new capacity additions remain limited. This imbalance suggests potential price increases by 2026. Key sectors such as power management, display drivers, automotive, and industrial chips are already facing supply shortages.
No reports indicate that companies have transferred or retrofitted 8-inch wafer factories in Taiwan recently. Instead, firms appear to be maximising output from existing facilities rather than expanding. This cautious approach reinforces the view that supply will stay tight in the near term.
UMC, a major player in mature-node production, has seen its share price rise sharply. Investors are betting on tighter 8-inch wafer supply and possible foundry price hikes. Even small increases in wafer prices could boost UMC’s earnings, given its heavy reliance on mature and specialty processes.
Market attention is now turning to UMC’s fourth-quarter earnings report, due on January 28. Analysts expect the results to provide clearer insights into demand trends and pricing power for the coming year.
The 8-inch wafer market’s supply constraints and rising utilisation rates point to a potential price upturn. UMC’s performance will likely serve as a key indicator of broader trends in the mature-node segment. Investors are watching closely for confirmation of these expectations in the company’s upcoming financial update.
