According to reports, United Microelectronics (UMC) has issued a price adjustment notice to its customers, indicating that wafer prices will be revised in the second half of the year. The company stated that demand in communications, industrial, consumer electronics, and AI-related sectors remains robust, leading to a tightening capacity environment across its product portfolio. To support customer needs, UMC is continuously improving manufacturing efficiency and investing in technology and capacity to ensure stable and high-quality wafer supply. Additionally, rising costs of raw materials, energy, and logistics have necessitated a reevaluation of its pricing structure. UMC emphasized that the price increase is not solely due to cost pass-through but is based on multiple factors, including resilient overall demand, tightening capacity, and ongoing investments in technology and efficiency improvements. While UMC did not specify the exact magnitude of the increase, it confirmed that prices will be adjusted in the second half of the year, with variations depending on product mix, capacity agreements, and long-term partnerships. Industry sources suggest that the new pricing will apply to wafers produced from July 1. Given the approximately three-and-a-half-month wafer production cycle, some orders placed by customers since April have already been priced according to the new rates. The price increase for 8-inch wafers is expected to be the most significant, ranging between 10% and 15%, adjusted based on customer order volume and collaboration terms. For 12-inch wafers, which primarily include mature nodes such as 80nm, 55nm, and 40nm, the increase is estimated at 5% to 10%, lower than that for 8-inch wafers, and also subject to customer-specific adjustments. Industry analysts note that this move reflects UMC's confidence in order intake and capacity utilization for the second half of the year, indicating that pricing for mature and specialty processes continues to strengthen amid growing demand from diverse applications, including AI. Notably, another major foundry, Nexchip, had previously announced a 10% price increase for wafers produced after June 1.
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