December 23, 2025 /SemiMedia/ — China’s Semiconductor Manufacturing International Corp (SMIC), the country’s largest contract chipmaker and a key global supplier of mature-node semiconductors, has started raising prices on parts of its wafer capacity, with increases of around 10%, according to people familiar with the matter.

Mature-node capacity tightens amid shifting global supply

The move comes amid a combination of steady demand growth and rising manufacturing costs. Strong shipments linked to server infrastructure and related applications have continued to support demand for mature-node chips, while higher prices for materials, labor and energy have added pressure to foundry cost structures.

At the same time, changes in global capacity allocation are reshaping supply dynamics. Several leading manufacturers have reduced or phased out portions of their 8-inch production lines to focus on advanced nodes, limiting available capacity for logic and analog chips produced on mature processes.

Rising costs and utilization support wafer price adjustments

SMIC had previously indicated that it would align its pricing strategy with broader industry trends rather than act ahead of peers. The latest adjustments reflect shifts in both supply and demand, rather than a standalone pricing decision, industry sources said.

The company’s operating performance has remained strong. During the first three quarters of 2025, SMIC reported solid revenue and profit growth, supported by high utilization rates and a product mix increasingly weighted toward higher-value mature technologies.

AI demand reshapes competition for semiconductor manufacturing capacity

China continued to account for the bulk of SMIC’s revenue, with demand from consumer electronics, industrial applications and emerging segments remaining resilient. Despite seasonally weaker conditions toward year-end, production lines have remained largely fully loaded.

Looking ahead, industry participants say competition for manufacturing capacity is intensifying as AI-related demand absorbs resources across the supply chain, while fluctuations in memory supply heighten price sensitivity. Against this backdrop, pricing power in mature-node wafer manufacturing is gradually re-emerging, with SMIC’s move seen as part of a broader industry adjustment.