January 16, 2026 /SemiMedia/ — Global 8-inch wafer foundry capacity is expected to tighten in 2026 as major chipmakers continue to scale back output, lifting utilization rates and prompting foundries to consider price increases, according to TrendForce.

The research firm said Taiwan Semiconductor Manufacturing Co and Samsung Electronics began reducing 8-inch capacity in 2025, with TSMC planning to phase out production at some sites by 2027. Samsung has adopted an even more aggressive approach. As a result, global 8-inch capacity entered negative growth in 2025 and is forecast to shrink further next year.

While foundries such as SMIC and Vanguard International Semiconductor plan limited capacity additions, TrendForce said these expansions will not be enough to offset reductions by the two industry leaders. Global 8-inch capacity is expected to fall by about 2.4% in 2026.

On the demand side, steady orders for mature-node products, including power management chips used in AI systems, are supporting utilization. Some consumer electronics customers have also moved to build inventory earlier, citing concerns over rising IC costs and potential capacity constraints later in the year.

TrendForce said several foundries have already notified customers of potential price increases ranging from 5% to 20% in 2026. Unlike selective price adjustments seen in 2025, the latest moves are expected to apply more broadly across process platforms. However, the firm noted that lingering weakness in end markets and rising costs at advanced nodes could limit the actual price upside.