Key Takeaways
- Powerchip Semiconductor Manufacturing (PSMC) raised DRAM wafer start prices by 45% in July.
- The increase is expected to boost revenue and profit from November onwards.
- Global memory supply-demand gap is projected to persist through 2027.
Powerchip Semiconductor Manufacturing (PSMC) has announced a significant price hike for DRAM wafers, increasing the start prices by approximately 45% in July from June levels. This move comes amid growing demand from major cloud service providers who have front-loaded their purchases of future DRAM capacity.
According to PSMC's online earnings call on July 14, 2026, the company expects this price increase to positively impact its revenue and profit starting in November. The company also reported that prices for both 8-inch and 12-inch logic foundry wafers rose by 10-15%.
The global memory supply-demand gap is anticipated to continue through at least 2027, according to industry analysts. This shortage has been exacerbated by the increasing demand from cloud service providers for advanced DRAM capacity, driven by the growing need for data storage and processing in artificial intelligence (AI) applications.
PSMC's decision to raise prices reflects its strategic positioning as a key player in the 3D AI foundry market, aiming to capture at least 20% of the revenue share. The company is focusing on expanding its capacity to meet the rising demand for high-performance DRAM chips used in cloud computing and data centers.
Industry experts predict that this price increase will have a ripple effect across the semiconductor industry, potentially leading to higher costs for manufacturers and consumers alike. However, PSMC's management remains optimistic about the long-term prospects of the market, citing strong demand signals from major tech companies.
The company has emphasized its commitment to investing in research and development to stay ahead of the curve in terms of technology advancements. This includes focusing on 3D stacking technologies that can enhance DRAM performance and capacity, making PSMC a preferred supplier for leading cloud service providers.
