Semiconductor Silicon WafersWS
Driven by price hikes and accelerated progress on 12-inch projects, the semiconductor silicon wafer market is entering a new boom cycle.
Recently, domestic silicon wafer leaders NSIG and Lion Microelectronics have sent positive signals respectively. Specifically, NSIG's H1 2026 financial report shows that its 300mm (12-inch) silicon wafer sales volume increased by over 90% year-on-year, with substantial revenue growth. Although it experienced phased losses due to capacity expansion investments and other factors, capacity construction has entered the fast track. Meanwhile, Leon Microelectronics explicitly stated at its earnings briefing that semiconductor silicon wafers have entered a price hike cycle, with robust market demand.
Driven by the dual forces of price recovery and the explosion of downstream demand such as AI computing power, expanding the capacity of 12-inch large silicon wafers has become a top priority for the domestic semiconductor materials sector. Local manufacturers are accelerating project deployment to seize the market high ground.
I. Price Hike Cycle Begins, Leading Manufacturers Announce Increases, Domestic Manufacturers Follow Suit
Industry dynamics show that the price hike trend for semiconductor silicon wafers began to emerge in January 2026, with some manufacturers taking the lead in making moderate price adjustments due to cost pressures. In May, the market received a major signal: Shin-Etsu Chemical, SUMCO, and GlobalWafers, the three top international manufacturers, simultaneously announced price hikes. Subsequently, in June, some domestic manufacturers followed suit with price adjustments. As of August this year, the price hike trend in the semiconductor silicon wafer industry continues.
Industry insiders point out that this round of price hikes was initiated by international giants and followed by domestic enterprises, reflecting a shift in the global supply-demand landscape. The core driver behind this price hike is the surging demand coupled with the inability of capacity to keep up with supply in a timely manner.
On the one hand, the demand for 12-inch silicon wafers from products such as AI servers and memory chips has surged dramatically. Meanwhile, global foundries have entered a large-scale capacity expansion cycle to match the demand for advanced-node chips. Major manufacturers such as TSMC (Taiwan Semiconductor Manufacturing Company), Samsung, and Intel are accelerating the construction of new production lines, triggering an explosion in upstream semiconductor silicon wafer market demand.
On the other hand, capacity expansion for semiconductor silicon wafers, from equipment procurement to capacity ramp-up, typically takes 18 to 24 months and involves extremely high technical barriers. This causes the expansion pace of major global silicon wafer manufacturers to significantly lag behind foundries. Even if leading silicon wafer manufacturers announce expansion plans, it will take time for new capacity to be released, and the capacity gap will persist in the short term.
In addition, the continuous rise in the prices of upstream raw materials such as polysilicon, coupled with increased energy costs for electricity and transportation, has also pushed up the production and manufacturing costs of silicon wafers, providing realistic support for price hikes.
II. Prime Time for Semiconductor Silicon Wafer Expansion, Domestic 12-Inch Related Projects Flourishing Across Multiple Fronts
As the price hike trend transmits from the international market to the domestic market and shifts from expectation to reality, expanding the capacity of 12-inch silicon wafers has become imperative.
Currently, advanced process equipment from major global semiconductor equipment manufacturers is all designed around 12-inch wafers, and newly built foundries also generally focus on 12-inch production lines. Driven by the dual factors of price hike dividends and downstream demand, major domestic manufacturers are accelerating the promotion of 12-inch semiconductor silicon wafer-related projects. Since 2026, multiple 12-inch silicon wafer projects have reached key milestones:
On June 18, #NSIG announced a plan to jointly increase the capital of its subsidiary Shanghai Simgui by a total of 11.448 billion RMB with Shanghai Guosheng (Group) Co., Ltd., specifically for the "300mm Silicon Wafer Capacity Upgrade Project for ICs". By the end of the first half of the year, NSIG's total 300mm silicon wafer capacity in Shanghai and Taiyuan had reached 1 million pieces/month, and is expected to further increase to 1.2 million pieces/month by the end of the year.
#TCL Zhonghuan previously announced a plan to invest 11.96 billion RMB in the Shenzhen project for 12-inch large semiconductor silicon wafers for ICs, with a planned monthly capacity of 700,000 pieces, an implementation cycle of 60 months, of which the core construction cycle is 18 months. This project will fill the capacity gap for high-end semiconductor materials in South China and form a north-south coordinated layout with the company's existing capacity.
Entering August, project progress has become even more intensive. On August 8, Xi'an ESWIN Materials announced that, together with multiple strategic investors, it completed a 6.5 billion RMB capital increase in its wholly-owned subsidiary Wuhan ESWIN Materials, with all funds used for the construction of the Wuhan 12-inch silicon wafer base. Notably, the company disclosed in July that the monthly production and sales scale of 12-inch electronic-grade silicon wafers had exceeded 1 million pieces, officially entering the million-piece supply stage. Meanwhile, the third Wuhan factory completed its main structure capping in May and plans to start equipment move-in in October. Once all three bases in Xi'an and Wuhan reach full capacity, its monthly capacity for 12-inch silicon wafers will reach 1.8 million pieces.
On August 14, the Phase II 12-inch large silicon wafer production line of #Zhengzhou WaferWorks has achieved stable large-scale mass production, with a current monthly capacity of 25,000 pieces. It is planned to increase to 60,000 pieces by the end of 2026, at which time the overall monthly capacity will reach 100,000 pieces. It is reported that its products have passed the verification of some foundries and possess the capability for commercial supply.
In addition, in August, media reports indicated that the Lishui epitaxial wafer project of Zhongxin Wafer has been fully completed, with orders for specialty process epitaxial wafers in short supply; logic epitaxial and buried layer epitaxial wafers are undergoing sample verification and volume ramp-up. The overall production of 12-inch polished wafers has reached 500,000 pieces/month, and due to strong demand, they are also in short supply. The Lishui project is continuously expanding, and Zhongxin Wafer is expected to reach an annual production scale of 9.6 million pieces by mid-2027.
The domestic semiconductor silicon wafer industry is ushering in a strategic window period of simultaneous volume and price increases, and the capacity competition for high-end silicon wafers, represented by 12-inch wafers, has fully begun. Industry insiders believe that with the gradual release of subsequent new capacity and the gradual realization of price dividends, the discourse power of domestic semiconductor silicon wafer manufacturers in the global supply chain is expected to be steadily improved, and the domestic semiconductor silicon wafer industry will also enter a deep growth stage with both opportunities and challenges.
#SemiconductorSiliconWafers #SemiconductorMaterials #LeonMicroelectronics