Wafer Foundry Price Hike Wave Returns, Guokewei and Baiweisd Storage Rally Together in Afternoon Trading

On March 16, the semiconductor sector continued to rise in the afternoon, with Guoke Micro (300672.SZ) up over 13%, Baiwei Storage (688525.SH) up nearly 12%, Hua Hong Company (688347.SH) up over 7%, and Shengbang Co., Ltd. (300661.SZ), GigaDevice (603986.SH), among others, also climbing.

According to reports, following storage chips and packaging, the semiconductor industry chain may experience a new wave of price increases. Mature process wafer foundries such as UMC (UMC.US), World Advanced, and Lijie Technology are expected to raise prices starting as early as April, with increases of up to 10% or more. UMC did not respond to market price increase rumors but previously mentioned that the current pricing environment is “indeed more favorable than before”; World Advanced’s price increase notice indicates plans to adjust foundry prices from April 2026, but the extent of the increase was not disclosed, and the company did not respond to the price hike; Lijie Technology confirmed that it has been gradually raising prices since this quarter, mainly adjusting products with lower gross margins. Additionally, major customers in mature processes, led by IC design companies driven by ICs, are planning to raise prices due to rising costs.

The global semiconductor industry is brewing a new wave of price hikes. Major international chip design companies such as Texas Instruments (TXN.US), NXP (NXPI.US), and Infineon have recently issued price adjustment notices to customers, announcing that some product prices will be increased starting April 1. Among them, Texas Instruments’ price increases for some products can reach up to 85%. Infineon’s mainstream products are expected to see price increases of 5% to 15%, with some high-end products possibly experiencing even larger adjustments.

CITIC Securities states that AI-driven demand for memory is strong, with the memory cycle continuing to rise. The demand from AI and domestic innovation is expected to significantly benefit domestic memory manufacturers in line with industry trends. It recommends paying attention to investment opportunities in domestic memory module and chip manufacturers. Recently, overseas analog chip companies such as TI, ADI, and Infineon have issued price increase notices; analog chips are critical for AI system stability, energy efficiency, and scalability, playing key roles in power conversion, voltage regulation, and signal chain management. They are vital in large-scale AI data center construction. The demand for power management chips and signal chain chips in AI servers has surged, and demand in industrial and automotive fields is recovering. The analog chip industry is rebounding. Benefiting from the global recovery of the analog chip industry and the explosion of AI demand, domestic analog chip manufacturers are accelerating innovation. It is recommended to focus on investment opportunities in domestic analog chip companies.