TAIPEI (Taiwan News) — Vanguard International Semiconductor said Monday it will raise foundry prices by 10% to 15% across the board starting in April.

VIS told customers the hike follows selective increases in Q1, per Liberty Times. The move is expected to boost gross margins as higher costs ripple through the semiconductor supply chain.

The company raised prices by a single-digit percentage earlier this year for some products, including power management ICs sold to integrated device makers. VIS forecasts Q1 shipments to rise 1% to 3%, but average selling prices could fall 3% to 5% due to product mix changes and expiring long-term contracts.

VIS Chair Fang Lueh (方略) said demand is improving as AI applications and investment pick up, while inventory corrections in industrial and automotive chips are easing, per UDN. Mature-node supply is tightening as capacity shifts to advanced processes, he added.

Fang said VIS is coordinating with customers on reasonable price adjustments tied to investment and expansion, aiming for long-term partnerships. He said past cycles show strong demand can support better outcomes for both sides.

Peers are sending similar signals, with Powerchip Semiconductor Manufacturing Corp. pointing to rising prices amid tighter supply driven by AI server demand, customers shifting away from China, and reduced capacity after asset sales.

PSMC said logic foundry demand has rebounded, and supply for both 8-inch and 12-inch services is likely to remain tight.