Global I/O Silicon Wafers — Silicon wafers: Meaningful price hikes necessary for sufficient wafer supply in 2 years

Our industry analysis suggests the silicon wafer supply vs demand outlook will continue to improve for the next 2 years, across all wafer sizes. We believe the 12"/8" wafer demand is tracking to grow 11%/11% in 2026, above our prior estimate of 9%/8% growth, reflecting more robust customer restocking with healthier inventory. Our updated industry model forecasts 12" wafer utilization to rise to 84%/91%/99% in 2026/27/28, vs 82%/88%/94% previously, with demand growing 14%/13% in 2027/28; 8" wafer utilisation should also rise to 80%/90%/97% vs prior 79%/87%/94%. We are optimistic about the price hike of silicon wafers and forecast this up-cycle to possibly hike 20%+ a year in 2027-28. Major customers need to incentivize wafer makers with higher prices to consider new expansion in 2028 and beyond, otherwise there could be a severe wafer shortage;