Shin-Etsu Chemical

According to cnBeta, global silicon wafer prices are expected to rise as much as 40% in 2027 due to surged AI infrastructure demand and LTSA expirations. The core driver is the explosive growth of AI data centers, with SUMCO estimating AI servers consuming 3.8 times more 12-inch wafers than ordinary servers, and HBMs using even more wafer area than traditional DRAM; limited new capacity and LTSA renewals are driving up prices, with Shin-Etsu Chemical, SUMCO, and GlobalWafers raising quotes as supply tightens. Capacity expansion spans 18-24 months with new capacity not expected until end-2026 or later, and the cost surge could propagate to foundries and chip designers, potentially triggering a new round of price increases from AI servers to consumer electronics.