01. AI Cost Pressure Spreads, Display DDIC Prices Poised to Rise
On September 21, SemiMedia reported thaAI-driven semiconductor demand is tightening mature-process capacity, pushing display driver IC (DDIC) prices higher. AI power management ICs are crowding out foundry capacity, with 8-inch foundry prices rising 5–10% in the first quarter. Foundry services account for 60–70% of DDIC costs; notebook DDICs climbed 5–15% in the second quarter, and display DDICs face pricing pressure in the third quarter.
02. Mainland Chinese Expansion Fails to Ease Memory Crunch; Direct Competition Possible by 2028
On September 24, Commercial Times reported that CXMT is expected to ramp DRAM monthly capacity from roughly 320,000 wafers to 420,000 by 2027, while YMTC's Wuhan Fab 3 is set to begin production at the end of 2026 and gradually ramp through 2027. Analysts believe that given the sheer scale of AI demand, new capacity from Chinese manufacturers is insufficient to reverse the global supply shortfall. The two companies are breaking from their traditional division of labor, with YMTC moving into LPDDR5 and CXMT venturing into NAND, setting the stage for head-to-head competition as early as 2028.
In the near term, CXMT's additional supply will be prioritized for the domestic mainland market, doing little to boost global high-end DRAM availability. YMTC's new fab will also take time to ramp, and new output may not necessarily flow overseas. Second-quarter inventory at original manufacturers has already fallen to historic lows, with DRAM bit shipments only increasing modestly, while PC and handset makers have placed orders early or adjusted designs.
03. ON Semiconductor Broadens Scope of Price Adjustments as AI Power Demand Intensifies Cost Pressure
On September 22, SemiMedia reported that ON Semiconductor has notified customers of expanded price adjustments across a broader product range effective October 10, citing sustained increases in raw material, manufacturing, energy, and infrastructure costs, alongside strengthening demand for power semiconductors from AI data centers. The company did not disclose a uniform percentage increase.
TI and Renesas have also announced price adjustments, with Renesas's new prices taking effect January 1, 2027. AI server deployments are driving demand for PMICs, MOSFETs, and other components, tightening mature-process resources. Taiwan supply chain sources indicate that some local power semiconductor manufacturers are considering further price adjustments, with more moves likely in Q4 or early 2027.
04. Qualcomm Unveils Two 2nm Flagship Chips, Renewed Showdown with MediaTek
On September 24, Economic Daily reported that Qualcomm has launched two flagship chips, the Snapdragon 8 Elite Extreme Gen 6 and the Gen 6, both built on TSMC's 2nm process and centered on agentic AI. The Extreme Gen 6 features the world's first 5GHz mobile CPU, with a 13% performance boost, 44% GPU improvement, and 35% NPU uplift. The new chips will power devices from Xiaomi, vivo, OPPO, and Honor. MediaTek had just unveiled its new flagship days earlier, reigniting the rivalry between the two giants.
05. Shortage Drives Prices Higher; DRAM Module Revenue Jumps 59% to Record Annual Gain
On September 22, United Daily News reported that TrendForce data showed global DRAM module market revenue reached $21.2 billion in 2025, surging 59% year-over-year for the largest annual increase on record. In the first half, module makers built inventory early amid tariff policies and the DDR4 end-of-life transition; in the second half, North American and Chinese CSPs expanded server DRAM procurement for agentic AI general server compute deployments, squeezing PC and consumer DRAM supply and pushing prices higher, allowing module makers to benefit from both volume and price gains.
06. AI Deployment Hits Storage Imbalance; Acer Sees Limited Impact
On September 23, Central News Agency reported that Phison Electronics CEO K.S. Pua said the biggest challenge for AI deployment is DRAM, with the industry broadly suffering from the memory crunch—"from what you see in the media, it seems only Acer isn't hurting." Acer Chairman Jason Chen had previously stated that mainstream PC memory such as DDR4 and DDR5 is seeing increased supply and will not be in short supply, while DDRX and DDR5X remain tight though demand is smaller. Phison is using its aiDAPTIV+ software paired with self-developed SSDs to run AI models with limited DRAM, having completed proof-of-concept with AMD, Intel, NVIDIA, and Qualcomm. Pua also pledged to meet ASRock's flash solution requirements.