UMC is cranking up wafer prices and blaming supply chain costs and AI demand.
United Microelectronics Corporation said in a customer letter dated 16 April 2026 that a wafer price adjustment will take effect in the second half of 2026.
UMC says it is spending more to sharpen manufacturing efficiency and expand technology and capacity, while costs for raw materials, energy and logistics keep climbing.
UMC senior vice president, global sales, Oliver Chang said: “With the first half of 2026 well underway, we are seeing resilient demand across a broad range of applications, including communications, industrial, consumer, and AI-related segments. This momentum is contributing to a sustained and increasingly tight capacity environment across UMC’s portfolio.”
“Tight capacity” means that punters are desperate for chips and are forced to pay whatever the manufacturers demand.
Chang said: “In light of these factors, UMC will implement a wafer price adjustment in the second half of 2026. This adjustment reflects both the evolving supply-demand environment and the continued investments required to support our customers’ growth. The pricing adjustment will be based on factors including UMC’s product mix strategy, capacity agreement and long-term partnership.”
The company is pointing to AI as part of the demand squeeze, with chipmaking tool procurement joining the list of cost drivers that never seem to go down.
UMC’s customer roster includes MediaTek, Intel, Qualcomm, Broadcom, Realtek, Novatek and Texas Instruments, plus a long tail of smaller chipmakers. The firm is said to rank 42nd by market cap, behind TSMC, Samsung, GlobalFoundries, and SMIC.
