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UMC Rebounds as Institutional Investors Return; Mature Node Pricing Seen Rising Through 2027
Electronic Technology · Semiconductors · economic_daily · 2026-08-24
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UMC shares surged 6% as institutional investors shifted to net buying. Analysts expect tight supply in mature nodes to drive price hikes through 2027 due to AI demand.
What Happened
Institutional Buying Returns: Amidst a broader market correction, UMC shares rallied 6%, drawing significant attention. Institutional investors, specifically local investment trusts, ended their selling streak with a net purchase of over 14,000 shares, while foreign investors extended their buying streak to four consecutive days.
Tight Mature Node Supply: The surge in demand for AI server power chips, silicon interposers, and silicon photonics (PIC) is heavily consuming 8-inch and 12-inch mature node capacity. With limited new capacity coming online, the supply-demand imbalance is tightening, providing strong support for foundry pricing.
Pricing Outlook: Analysts anticipate that the upward trend in mature node pricing will persist through 2027. Foundry prices have already seen increases of 5% to 15% in the first half of this year, and further hikes are expected through next year, with some 12-inch processes already signaling potential broad-based price increases.
Strategic Industry Shift: UMC is benefiting from the reliance of AI-related applications on mature nodes, particularly in the 28nm to 65nm range. As advanced packaging technologies become more prevalent, mature nodes are transitioning from traditional consumer electronics to high-end AI applications, serving as a key pillar for UMC's long-term profitability.