Yesterday, news broke that leading domestic chip manufacturers have started to raise prices on some production lines, with increases of around 10%.

The underlying logic is actually simple—strong demand from both smartphones and AI has directly boosted wafer order volumes, leading to increased shipments across the entire semiconductor industry. Rising raw material costs are also a contributing factor.

The key point is that the major wafer fabs in Taiwan can no longer sit still. They have confirmed plans to consolidate 8-inch capacity and intend to gradually shut down some production lines by the end of 2027. This move is enough to make the entire supply chain anticipate price hikes.

From a broader perspective, the semiconductor sector remains hot. With capacity tightening and strong demand, the combination of these factors makes it difficult for the market cycle to turn around in the short term.