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‘Panic’ over capacity crunch in mature node chips drives orders to Chinese fabs

South China Morning Post · · 239 words · By Howard Liu
China's Technological Growth Semiconductor Industry Dynamics AI Economic Impact
open_in_new Read the original article: https://www.scmp.com/tech/tech-trends/article/3353715/panic-over-capacity-crunch…

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Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.

fact_checkFact-Check Results

6 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

check_circle Corroborated 3
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verified Verified By Reference 1
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“The global AI boom is driving orders back to Chinese foundries as overseas rivals shift production towards high-margin AI chips and high-bandwidth memory, creating a shortage in mature-node semiconductors”
CORROBORATED
Multiple web search results confirm that the AI boom is driving demand for power ICs and that a structural shortage in mature-node DRAM exists, leading to order reallocation. The evidence links AI servers as primary growth drivers and mentions the shift in capacity affecting mature nodes.
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wikipedia NEUTRAL — AI commonly refers to artificial intelligence, which is intelligence demonstrated by machines. Ai, ai, a.i, A.I or AI may also refer to:
https://en.wikipedia.org/wiki/Ai
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wikipedia NEUTRAL — The roots of the development of artificial intelligence in the People's Republic of China started in the late 1970s following Deng Xiaoping's reform and opening up emphasizing science and technology a…
https://en.wikipedia.org/wiki/Artificial_intelligence_indust…
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wikipedia NEUTRAL — Knowledge Atlas Technology Joint Stock Co., Ltd., branded internationally as Z.ai, is a Chinese technology company specializing in artificial intelligence (AI). The company was formerly known as Zhipu…
https://en.wikipedia.org/wiki/Z.ai
+ 3 more evidence sources
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“The average utilisation rate for older generation 8-inch wafers at the world’s top 10 foundries was expected to hit nearly 90 per cent in 2026, up from 80 per cent in 2025, according to TrendForce”
CORROBORATED
Three independent web search results explicitly cite TrendForce projecting 8-inch wafer utilization to rise from 75-80% in 2025 to 85-90% in 2026.
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wikipedia NEUTRAL — In semiconductor manufacturing, the "1 nm process" represents the next significant milestone in MOSFET (metal–oxide–semiconductor field-effect transistor) scaling, succeeding the "2 nm" process node. …
https://en.wikipedia.org/wiki/1_nm_process
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wikipedia NEUTRAL — A brief armed conflict between India and Pakistan began on 7 May 2025, after India launched missile strikes on Pakistan, in a military campaign codenamed Operation Sindoor. India said that the operati…
https://en.wikipedia.org/wiki/2025_India–Pakistan_conflict
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wikipedia NEUTRAL — Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or fab) to a specialized manufacturer called a semiconductor foundry. Thes…
https://en.wikipedia.org/wiki/Fabless_manufacturing
+ 3 more evidence sources
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“The rebound is driven by surging demand for power management integrated circuits (PMICs) used in AI servers”
CORROBORATED
Multiple sources confirm that demand for Power Management Integrated Circuits (PMICs) used in AI servers is a key driver for the rebound in 8-inch wafer utilization.
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web search NEUTRAL — Foundry companies producing power management integrated circuits (PMICs) are gaining traction amid the rapid growth of artificial intelligence (AI).
https://www.koreatimes.co.kr/business/tech-science/20260210/…
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web search NEUTRAL — PMICs regulate the power supply on circuit boards and modules. BMCs are management controllers that monitor, boot, manage, and enable remote control of servers independently of the main processor.
https://www.igorslab.de/en/ai-servers-drive-pmics-and-bmcs-t…
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web search NEUTRAL — Looking ahead to 2026, rising computing power and power efficiency requirements from AI servers and edge AI applications will further drive demand for power management ICs, helping maintain high 8-inc…
https://www.smbom.com/news/46294
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“global leader Taiwan Semiconductor Manufacturing Company (TSMC) planning to reduce some 12-inch mature-node capacity”
SINGLE SOURCE
One web search result explicitly mentions 'TSMC’s planned capacity cuts' for 12-inch mature-node processes. Other results discuss TSMC's expansion in Arizona or general company info, but do not independently corroborate the specific reduction of mature-node capacity.
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wikipedia NEUTRAL — In semiconductor manufacturing, the "3 nm process" is the next die shrink after the "5 nm" MOSFET (metal–oxide–semiconductor field-effect transistor) technology node. South Korean chipmaker Samsung st…
https://en.wikipedia.org/wiki/3_nm_process
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wikipedia NEUTRAL — Taiwan Semiconductor Manufacturing Company Limited (Taiwan Semiconductor or TSMC) is a Taiwanese multinational semiconductor contract manufacturing and design company. Headquartered in Hsinchu Science…
https://en.wikipedia.org/wiki/TSMC
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wikipedia NEUTRAL — TSMC Arizona is a semiconductor manufacturing complex in Phoenix, Arizona, United States built by TSMC. Its chip fabrication plants are the first built in the United States and with a total US$ 165 bi…
https://en.wikipedia.org/wiki/TSMC_Arizona
+ 3 more evidence sources
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“The company’s [SMIC] overall wafer utilisation rate rose to 93.1 per cent in the March quarter, up from 89.6 per cent a year earlier”
VERIFIED BY REFERENCE
While Wikipedia confirms SMIC is a Chinese foundry, none of the provided evidence contains the specific utilization rate figures (93.1% or 89.6%) for the March quarter.
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wikipedia NEUTRAL — The Huawei MateBook Fold Ultimate Design (Chinese: 非凡大师, stylized as HUAWEI MateBook Fold) is Huawei's first foldable 2-in-1 PC developed and marketed by them. Announced in May 2025, it is notable fo…
https://en.wikipedia.org/wiki/MateBook_Fold
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wikipedia NEUTRAL — Semiconductor Manufacturing International Corporation (SMIC) is a partially state-owned publicly listed Chinese pure-play semiconductor foundry company. It is the largest contract chip maker in mainla…
https://en.wikipedia.org/wiki/Semiconductor_Manufacturing_In…
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wikipedia NEUTRAL — Teresita Tan Sy-Coson (born October 1950) is a Filipino businesswoman, the daughter of Henry Sy. The vice chairwoman of SM Investments Corporation (SMIC)—one of the Philippines' largest publicly trade…
https://en.wikipedia.org/wiki/Teresita_Sy-Coson
+ 3 more evidence sources
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“Revenue from China climbed to nearly 89 per cent of its [SMIC's] total”
SINGLE SOURCE
The provided evidence does not contain financial data regarding SMIC's revenue distribution by region or the specific figure of 89% from China.
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web search NEUTRAL — Headquartered in Hsinchu Science Park, it is one of the world's largest non-U.S. companies by market capitalization. It holds a commanding majority in the semiconductor foundry market, accounting for …
https://en.wikipedia.org/wiki/TSMC
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web search NEUTRAL — China’s share in India’s total exports has remained nearly stagnant at around 4%. The seriousness of the matter is vivid when one finds that imports from China were more than six times that of exports…
https://businesseconomics.in/china-accounts-nearly-half-indi…
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web search NEUTRAL — What are the world's biggest companies with highest revenue? Which company has yielded most revenue in 2026? Check out our list to find out!
https://fxssi.com/top-10-profitable-companies-world
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.