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Jun 11
Commentary: TSMC's pricing power stays intact as AI demand keeps fabs full
Market chatter about TSMC has intensified, with reports that its advanced process and packaging prices will rise again in the second half of 2026 and 2027, while some Google TPU production could shift to Intel, and some AMD products could be made by Samsung Electronics. TSMC CFO Wendell Huang recently told the media that global inflation and overseas fab expansion have indeed pushed up operating costs, adding that TSMC does not rule out moderate price adjustments. Those comments have drawn close attention across the industry.

Taiwanese power management IC supplier Global Mixed-mode Technology (GMT) will follow peers in seeking price increases from customers as tight chip supply continues to reshape capacity allocation across the industry.

Samsung Electronics is regaining ground in high-bandwidth memory and foundry services, but advanced packaging remains a weak point in its bid to capture a larger share of the AI chip supply chain, according to industry sources and Korean media reports.

SK Hynix's latest fire at its Cheongju, South Korea, campus has again disrupted operations at a key memory-chip site and prompted evacuations of thousands of workers. The incident adds to a series of recent accidents, raising fresh safety concerns for semiconductor plants worldwide that depend on hazardous gases and chemicals.
Taiwan's semiconductor and electronics supply-chain companies continued to post generally firm sales in May, according to monthly revenue data and company disclosures, with the strongest accumulated growth concentrated in AI-linked logic, testing, substrate, and copper-clad laminate suppliers.

A strike by South Korea's ready-mix concrete transport union is disrupting major semiconductor construction sites and raising concerns about wider industrial spillovers. If the stoppage continues, delays could spread beyond building projects and affect production schedules that matter to global technology supply chains and investors.

Silicon Labs is deepening its presence in India through expanded research operations and a greater commercial focus on smart infrastructure applications, even as the US-based wireless chipmaker prepares for an acquisition by Texas Instruments.

Google is considering using Samsung Electronics to manufacture part of a future artificial intelligence (AI) chip, a move that would mark a notable shift in the US tech group's supply chain as demand for advanced AI silicon strains capacity at TSMC.

In power electronics engineering, Silicon Carbide (SiC) companies are competing to achieve the absolute lowest thermal resistance (Rth), with the mindset that lower heat signature equates a superior system. However, at PCIM Europe 2026, a collaborative project between Rohm Semiconductor, Schweizer Electronic, and eMoveUs GmbH exposed a revolutionary counter-intuitive shift in design philosophy: willingly accepting a localized thermal performance deficit to ultimately achieve dominant system-level advantages.

Sigurd announced that its May revenue reached a historic high, driven by overseas customer expansion, stronger demand for AI-related chips, and rising use of advanced packaging capacity. The result suggests continued momentum in global semiconductor supply chains, with implications for networking, memory, and high-performance computing markets worldwide.

TSMC has been drawn into a patent infringement complaint in the US by Ireland-based patent licensing firms Longitude Licensing and Marlin Semiconductor. The companies have claimed that the US government could block imports to the US of chips made by TSMC as a result of the case, and have enlisted several members of Congress to support their position, drawing market attention.
Hanmi Semiconductor plans to invest KRW50 billion (US$32.81 million) in SpaceX, highlighting how space, satellites, and artificial intelligence infrastructure are increasingly linked. For global readers, the deal signals how semiconductor suppliers are positioning themselves around next-generation supply chains, customer demand, and the expansion of AI-driven industrial ecosystems.