Top contract manufacturers Nexchip and VIS raise prices for mature process chips, impacting automotive and consumer electronics. Learn about the drivers and industry effects.
© D. Novikov
Two of the world's top ten contract semiconductor manufacturers, Nexchip and Vanguard International Semiconductor (VIS), have announced price hikes for their services. Both companies specialize in mature process technologies, and their decisions could impact a wide range of products, from automotive electronics to consumer devices.
Nexchip disclosed its price adjustments on March 6 during an investor meeting. Company representatives noted that some contracts have already been revised upward. Going forward, the manufacturer plans to respond to market changes by optimizing its product structure, improving operational efficiency, expanding application areas, and implementing flexible pricing based on demand and market conditions.
VIS, according to circulated documents, explained the upcoming price increase as driven by investments in expanding production capacity starting in 2025. The company is also facing ongoing cost rises for equipment, raw materials, energy, precious metals, logistics, and personnel. To maintain stable operations and ensure future growth, VIS intends to officially revise its contract manufacturing pricing from April 2026.
Price increases are not limited to foundries. Previously, major chipmakers like Texas Instruments, NXP, and Infineon also announced price adjustments. Experts observe that amid rising costs, the semiconductor industry may enter a new phase of pricing pressure across the entire supply chain.