Costs for Mature Process Chip Manufacturing Expected to Rise This Quarter

• January 27, 2026

Chip manufacturers will see rising production expenses for semiconductor wafers created with established lithography processes in the current quarter. Although the AI boom is often linked to cutting-edge chip technology, this trend is driving cost increases even in segments relying on mature process nodes.

Recent industry reports indicate that prices for producing chips on mature lithographic technologies could rise by as much as 10% this quarter. These mature processes, widely used in various types of integrated circuits beyond AI-specific hardware, are now experiencing cost pressures as the entire semiconductor supply chain adjusts to ongoing demand shifts.

This increase affects a broad range of market players who depend on these stable and proven manufacturing techniques, including sectors focusing on automotive, industrial electronics, and consumer devices. The price adjustments reflect broader supply chain dynamics rather than the introduction of new lithography innovations.

Industry Impact and Market Dynamics

The surge in AI-related chip demand commonly points to advanced manufacturing nodes such as 5-nanometer or smaller technologies. However, mature node technologies—typically representing 28 nanometers and above—remain vital for many applications and contribute significantly to overall semiconductor output. Cost changes in their production have implications across multiple industries that rely on dependable and cost-effective chip supply. Competitors in chip making continue to manage these shifts while balancing production capacities and pricing strategies.

Looking ahead, stakeholders will be monitoring how these price rises for mature process chips influence supply chain decisions, contract negotiations, and the broader semiconductor market throughout the year.

Chip production costs using mature lithography techniques are set to increase by up to 10% this quarter, impacting prices beyond advanced AI chips.