01. PMIC and Power Component Makers Join Price Hike Chorus
March 24 – Commercial Times reports that with demand surging from AI servers, high-efficiency power supplies, and electric vehicles, PMICs and power components have become the "hardest to suppress" segments in the semiconductor supply chain after three years of inventory destocking.
Silergy openly acknowledges potential price increases this year, while Diodes Inc. (Taiwan) anticipates April adjustments and Taiwan Semiconductor expects ASP stabilization and growth. These products heavily rely on mature 8-inch BCD processes, where capacity cuts and amplified demand are driving prices higher. Overseas giants like TI have raised some product lines by as much as 85%, with ADI and NXP following suit.
Industry sources indicate supply-side tightness has become the new normal, with customers placing more long-term and rush orders while emerging applications consume available capacity. Taiwan Semiconductor and Diodes Inc. will hike prices for diodes, MOSFETs, and other products starting April 1, with high-voltage MOSFETs – critical for AI rack power delivery – facing particularly severe shortages. Power semiconductors are transitioning from "supporting roles" to "key enablers" in the AI era, with demand expected to remain elevated over the long term.
02. Morgan Stanley Warns Legacy NAND Supply Gap Could Hit 40% in H2
March 26 – Economic Daily News reports that Morgan Stanley cautions supply shortfalls for legacy MLC and TLC NAND could reach 40% in the second half, with full-year price gains potentially exceeding 200%, making the segment more attractive than DDR4. The firm's Taiwan top pick has shifted from Winbond to Macronix, which stands to benefit most from this shortage; in DRAM, they favor APU.
Analyst Yen Chih-tien notes that mature-process NAND faces structural scarcity. MLC's high endurance and low price sensitivity among industrial and enterprise customers are exacerbating supply-demand imbalances. Conversely, DDR4's price rally has triggered customer pushback, with suppliers inclined to liquidate inventory. Winbond and Nanya Technology ratings have been downgraded to "Neutral," as elevated prices may dampen consumer electronics demand, and the lack of AI applications limits growth momentum.
03. STMicroelectronics Announces Across-the-Board Price Hikes Starting April
March 25 – SemiMedia reports that STMicroelectronics has notified customers of price increases across multiple product lines effective April 26, 2026.
The company cited rising raw material costs, with some suppliers imposing allocation surcharges or raising quotes, alongside recent increases in energy and logistics expenses. Additionally, heightened spending to secure wafer fab and OSAT capacity has further amplified overall cost pressures. New pricing will apply to multiple product lines, with detailed information to be communicated to customers in the coming weeks.
04. Broadcom Warns of Foundry Capacity Crunch as Supply Chain Bottlenecks Spread
March 26, 2026 – Semiconductor industry media reports that Broadcom stated surging AI chip demand is intensifying production pressures, with foundry and supply chain constraints already impacting deliveries.
Broadcom highlighted that TSMC's capacity is near full utilization, becoming a critical industry bottleneck. TSMC has also indicated that AI infrastructure investments are consuming most of its advanced process capacity, with new supply not expected to ease until 2027, keeping 2026 tight. Pressure is spreading to optical components and PCBs, with Taiwan and mainland China suppliers running at full capacity and extending lead times. Many customers are now signing three-to-four-year long-term agreements to lock in capacity.
05. Market Pulls Forward Demand; Dell Taiwan Confirms Price Increases
March 26 – United Daily News reports that Dell Taiwan General Manager Richard Liao stated that PC products in Taiwan have already seen price hikes due to memory shortages and rising costs, with specific increases dependent on component expenses. Strong pre-buying activity has turned the traditionally slow first quarter into a robust sales period, with users anticipating continued price increases throughout the year.
Industry insiders note that component prices this year are nowhere near their lowest point, with some CPUs also experiencing shortages or extended lead times. Dell's robust supply chain team can assist customers in adjusting configurations to ensure delivery. Liao also indicated that Taiwan's AI market demand will grow even faster this year.
06. Higher AI Efficiency Drives Greater Memory Chip Usage
March 27 – Economic Daily News reports that Google's launch of the "TurboQuant" compression algorithm, which claims to run LLMs with just one-sixth the memory, triggered a sell-off in memory stocks. However, Wall Street analysts citing Jevons' paradox argue that efficiency gains will actually boost memory chip demand.
JPMorgan views TurboQuant as neutral in the near term but positive long-term; Morgan Stanley states the algorithm benefits cloud providers and LLMs by improving ROI. Professional analysis indicates the algorithm only reduces cache memory during inference, without affecting the storage space required for model training.