Global foundries are expected to raise prices in the second half of the year as semiconductor production capacity fails to keep up with demand.

According to the semiconductor industry, global foundries such as TSMC, SMIC, and UMC are reportedly planning to raise prices in the third quarter of 2021. The price increase is expected to be around 30%.

As the foundry industry had already raised prices in the first half of the year, the market had expected a price increase of around 15%, but an industry insider said that the 30% figure exceeded the semiconductor industry's expectations, and that most chip prices could rise through this price increase.

Global semiconductor production has been experiencing tight supply conditions over the past year.

Even under the current circumstances, there is no sign of the tight production situation easing, and the industry predicts that it will continue until 2022 or even 2023.

SMIC, China's largest foundry, said in a recent conference call that its production capacity is currently unable to keep up with demand, responding to investor questions.

He also mentioned that “operating profit in the first quarter of this year increased by 12% compared to the same period last year, and sales to customers in Europe and the United States accounted for 45%.”