---
title: "AI Computing Power Surge Drives Billions in Demand, Confirming Inflection Point for Semiconductor Silicon Wafer Price Hikes"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/289295484.md"
description: "Driven by the accelerated deployment of large AI models and capacity expansion at wafer fabs, the global semiconductor silicon wafer industry is entering a cycle of rising volume and prices. Giants such as Shin-Etsu Chemical Co Ltd have raised quotes, confirming the inflection point for price increases. Chinese local companies are accelerating expansion during the window of domestic substitution, with the share of domestic mainstream process capacity expected to rise significantly by 2028. The resonance of supply and demand is pushing the industry into an upward trajectory"
datetime: "2026-06-10T08:31:30.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/289295484.md)
  - [en](https://longbridge.com/en/news/289295484.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/289295484.md)
---

# AI Computing Power Surge Drives Billions in Demand, Confirming Inflection Point for Semiconductor Silicon Wafer Price Hikes

The global semiconductor silicon wafer industry has officially entered an upward cycle characterized by rising volume and prices. Driven by the accelerated commercialization of artificial intelligence (AI) large models and significant capacity expansion by leading global wafer foundries, the semiconductor silicon wafer market is emerging from a two-year inventory adjustment period, with the inflection point for industry price hikes clearly confirmed.

Since 2026, the three global silicon wafer giants—Shin-Etsu Chemical Co Ltd, SUMCO, and GlobalWafers—have simultaneously raised quotes for 12-inch silicon wafers, with particularly significant increases for specialized wafers aimed at AI and high-performance computing. Hua Xiaowei, an analyst at Guosheng Securities, pointed out in a recent research report that this round of price hikes is driven by the triple factors of demand growth, limited supply, and rising costs, rather than short-term disturbances. SUMCO expects that **by 2026, AI demand for advanced process silicon wafers will reach 1 million wafers per month, accounting for more than 10% of the total global demand for 12-inch silicon wafers.**

From an industry-wide perspective, global silicon wafer shipment area grew by 5.8% year-on-year to 12.973 billion square inches in 2025, but sales revenue decreased slightly by 1.2% year-on-year, showing structural recovery characteristics of "increased volume but decreased price." The opening of the price upward channel in 2026 marks the industry's transition from simple shipment recovery to a stage of volume-price resonance. According to SEMI forecasts, the global semiconductor silicon wafer market size is expected to exceed $20 billion by 2030.

Meanwhile, accompanied by capacity constraints among international oligopolies and overall price increases, Chinese local silicon wafer companies are encountering a window period for accelerated market share expansion. According to SEMI forecasts, 108 new wafer fabs are expected to be built globally by 2028, with China accounting for 47 of them. China's capacity share in the mainstream 22nm to 40nm process nodes will increase from 25% in 2024 to 42% in 2028. This wave of capacity expansion will continue to release rigid demand for domestic silicon wafers, creating broad market space for domestic silicon wafer enterprises.

## Multiple Resonances in Supply and Demand Drive Silicon Wafer Prices into an Upward Channel

This round of silicon wafer price increases is not driven by a single factor, but is the result of simultaneous pressure from demand, supply, and cost.

**On the demand side,** the accelerated commercialization of AI large models has driven high growth in high-end chip demand, while the continuous increase in new energy vehicle penetration has expanded the demand for automotive-grade chips. Capital expenditures for capacity expansion by leading global wafer foundries have hit record highs, directly boosting upstream silicon wafer procurement volumes.

**On the supply side,** the silicon wafer capacity expansion cycle is long, taking 18 to 24 months from equipment procurement to capacity ramp-up, with extremely high technical barriers. Coupled with the high monopoly of international oligopolies such as Shin-Etsu Chemical Co Ltd, SUMCO, and GlobalWafers over the market, the supply side cannot quickly respond to demand growth in the short term, resulting in a supply-demand gap.

**On the cost side,** energy and labor costs have risen comprehensively, and disruptions in the supply of petrochemical raw materials from the Middle East have further pushed up production costs, providing additional support for price increases. Under the superposition of these three factors, silicon wafer manufacturers have sufficient momentum and room for price hikes.

Artificial intelligence is the core driver of this silicon wafer industry recovery. SUMCO expects that **by 2026, monthly demand for advanced process silicon wafers from AI-related applications will exceed 1 million units, accounting for more than 10% of the total global demand for 12-inch silicon wafers.** This figure marks that AI computing power demand has evolved from a marginal increment to a core variable affecting the overall supply and demand landscape.

## Large-Scale Capacity Expansion at Wafer Fabs Releases Rigid Demand

Semiconductor supply chain security is receiving increasing attention from various countries, and tightening technology export controls are accelerating the process for domestic chip manufacturing enterprises to certify domestic suppliers. A Guosheng Securities research report points out that domestic substitution is evolving from "breakthroughs at single points" to "comprehensive blossoming."

According to SEMI forecasts, among the 108 new wafer fabs to be built globally by 2028, China will account for 47. The share of Chinese capacity in the mainstream 22nm to 40nm process nodes will significantly increase from 25% in 2024 to 42% in 2028. Once the strict certification system of wafer fabs is passed, it creates strong customer stickiness. Domestic silicon wafer companies, leveraging geographical advantages and rapid response capabilities, are poised to continuously expand their market share.

## Leading Enterprises Break Through Technological Barriers, Releasing Significant Performance Elasticity

As the global semiconductor industry enters the "post-Moore era," the acceleration of 2nm process mass production and the widespread application of GAA architecture have imposed higher requirements on indicators such as monocrystalline quality and defect density of silicon wafers. Some domestic leading enterprises, relying on profound technical accumulation and forward-looking capacity layout, have broken through core technical thresholds and deeply bound themselves to leading global wafer foundries, with their performance elasticity accelerating.

Lion Microelectronics, as a leading enterprise in the domestic heavy doping field, accounted for approximately 3.68% of global shipments of all-size silicon wafers in 2025. In the first quarter of 2026, the company's 12-inch silicon wafer revenue increased by 88.12% year-on-year, with a significant rebound in gross margin. Currently, its silicon wafer business orders are full, with heavy-doped silicon epitaxial wafer products sold out at full production, and delivery times for 8 to 12-inch low-resistivity silicon epitaxial wafers have extended.

Xi'an Yicai focuses on the 12-inch silicon wafer sector and has achieved autonomous control over the entire process flow. By the end of 2025, its monthly production capacity for 12-inch silicon wafers exceeded 850,000 units, with a global market share of approximately 6.8%, ranking first in China and sixth globally. It has steadily supplied bulk quantities to globally renowned companies such as TSMC and Micron Technology. By the end of 2026, its capacity is expected to further expand to approximately 1.2 million units per month.

In addition, domestic silicon wafer leader NSIG has fully broken through key technologies such as the growth of near-perfect 300mm monocrystals. In 2025, the company developed 168 new 300mm products, with customers covering SMIC and global leaders such as TSMC and UMC. Meanwhile, the company is deepening its presence in the high-end niche market through its subsidiary Okmetic, accelerating its strategic transformation from a "domestic leader" to a "global participant."

Risk Warning and Disclaimer

The market carries risks; investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investors bear full responsibility for decisions made based on this content.

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