Asia's semiconductor industry is experiencing a dual explosion driven by surging AI demand. Not only are chip companies across the region implementing broad price increases—with smaller players now joining market leaders—but 2026 capital expenditures are projected to jump 25% year-over-year to a record $136 billion.
According to TrendForce, leading chip manufacturers and OSATs in South Korea, Taiwan, Japan, and China have committed over $136 billion in combined 2026 spending. Notably, this marks the first time since late 2022 that numerous small-to-mid-sized companies have followed the price hike trend.
Vanguard International Semiconductor (VIS) , a TSMC-affiliated foundry, has informed clients of Q1 2026 price increases of around 5% , followed by a further 10-15% hike in Q2, driven by soaring demand for power management chips in AI applications.
The AI boom's ripple effects extend beyond processors. Unimicron, the world's largest substrate supplier, has repeatedly raised prices since Q4 2025 while boosting 2026 CapEx to a record NT$34 billion, expanding advanced substrate capacity for AI chips.
Winbond Electronics is taking an aggressive stance, committing NT$42.1 billion in 2026—nearly eight times last year's spending. The NOR flash and specialty DRAM maker expects average Q1 2026 prices to jump over 30% .
ICgoodFind : AI's influence now permeates every layer of Asia's chip supply chain, from foundries to substrates to specialty memory. The combination of broad-based price hikes and record capacity investment signals sustained sector momentum, with smaller players finally participating in this upcycle.
