Rising foundry costs will increase passive component prices in 2027

From AI demand to geopolitics, mounting pressure continues to drive pricing challenges across the semiconductor industry. While much of the attention has focused on leading-edge chips for AI, mature-node technologies remain the backbone of numerous industries, including high-reliability sectors like automotive and aerospace. Now, TSMC is starting to warn companies that a new round of price adjustments is coming in 2027.  

Simultaneously, geopolitical developments continue to have a strong impact on the global helium supply. While China accounts for only a small share of the global market, even the slightest tightening could add unexpected stress to an already strained critical supply chain.  

TSMC prepares mature-node wafer price increases

Even as demand for its advanced-node wafers thanks to the rapid expansion of AI is booming, TSMC is now reportedly planning to raise prices for its mature-node wafers starting in January 2027. According to notices sent to IC design customers and reported by Economic Daily News, the increase is expected to be in the single-digit percentage range, though exact figures vary by customer and product line.  

A single-digit adjustment may seem routine, but for TSMC, it marks the first mature-node price hike in more than three years.  

At mature nodes, scale is an important factor to consider since these components account for the vast majority of semiconductor shipments by volume. A wafer price increase of just a few percentage points compounds quickly when it reaches automotive control modules, industrial power supplies, or consumer devices with thin margins.  

Though AI demand certainly plays a role, it isn’t the only driver behind this increase. Foundries have spent years absorbing rising labor, utility, equipment, and general manufacturing costs while mature-node wafer pricing stayed relatively flat. This combination has squeezed margins that already run thinner than leading-edge production.  

These pressures have also manifested in how foundries manage their mature-node portfolios. Rather than absorb thinning returns across every legacy product line, manufacturers are increasingly consolidating production, discontinuing lower-margin parts to free up capacity for higher-return advanced node output. For buyers tied to components on those deprioritized lines, availability is becoming just as pressing a concern as pricing.  

Mature process technologies remain essential for automotive, industrial, power management, analog, and consumer electronics applications. Buyers in these areas rely on stable, predictable pricing and ready availability of critical components. Yet, as AI buildouts continue to scale, the sheer scale of silicon required is increasing demand at these legacy nodes and eroding stability.

Notably, TSMC isn’t the only supplier raising prices for mature-node products. As reported by TrendForce, UMC, PSMC, and Vanguard have all implemented recent hikes of their own. With the world’s largest chipmaker now following suit, mature-process foundries across the board now have firmer standing on which to start considering further increases.  

With TSMC’s latest price hike on the horizon, procurement teams should soon revisit what they may traditionally view as a stable, low-risk category. Diversifying supplier relationships is essential in this tumultuous market, but visibility is equally important. Knowing which node categories are exposed to price hikes before they arrive is what separates organizations that can pivot effectively from those left to absorb costs after the fact.  

Sourceability helps customers achieve this proactive posture by implementing diversified sourcing and procurement strategies that improve supply continuity and reduce exposure to future cost increases.  

Helium export restrictions create new manufacturing risks

China's Ministry of Commerce and General Administration of Customs jointly announced temporary export restrictions on helium on July 10, according to a report from TrendForce. The rule went into effect immediately with no grace period.  

For global foundry production, the good news is that China accounts for just 1.6% of worldwide helium production. This places it sixth in the world alongside Poland at just three million cubic meters annually, far behind the U.S., which churns out some 81 million cubic meters every year. However, small market share does not necessarily equate to low risk when the underlying helium supply chain is already tight.  

Helium’s importance to chipmaking cannot be understated. In its liquid state, it is critical to several processes, most notably extreme ultraviolet (EUV) lithography systems.  

TrendForce notes a single EUV unit consumes more than 10,000 liters of helium annually to achieve the -269°C temperatures required for its superconducting magnets and optical systems. According to ESM China, more than 150 liters of helium is required to produce one 3nm wafer, roughly 145% more than it takes to make a 90nm wafer.  

There is no other material capable of sustaining the supercooled environment of EVU lithography demands, meaning any major disruption in the helium supply chain puts wafer production in jeopardy. As foundries push further into advanced nodes to meet AI-driven demand, they're simultaneously increasing their exposure to a gas supply that's already shown how fragile it can be.  

The helium supply chain has experienced a challenging year thanks to tensions in the Middle East that disrupted shipping through the Strait of Hormuz and halted production at key Qatari facilities. Russia, the world’s third-largest helium producer, also implemented temporary export controls. Together, these events briefly pushed the global helium supply gap over 40%, illustrating the fallout of multiple failures occurring simultaneously.  

China’s restrictions aren’t currently cause for global concern but are indicative of a move to insulate its domestic industries against further disruption given its dependence on imports. However, it’s a development to monitor closely should other pieces of the global helium supply chain find themselves in hot water.  

As geopolitical influence over strategic raw materials continues to expand, organizations must look beyond component pricing when developing procurement strategies. Upstream material availability should be factored into sourcing decisions early and diversified when possible, to ensure supply continuity.