Silicon Wafer Prices Will Rise by 2027
Growing demand for AI chips is driving up the cost of raw materials and production capacity for semiconductor components.
Updated on Sept. 23, 2026 in Semiconductors
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Silicon wafer prices are projected to climb significantly by 2027 due to intense supply chain pressure from the AI sector. Forecasts indicate a sharp rise in costs for polished and epitaxial wafers alongside a surge in CoWoS production capacity.
Why it matters
As the demand for AI components intensifies, semiconductor manufacturers face mounting supply chain pressure for basic raw materials. This scarcity is forcing companies into long-term agreements to secure both essential production capacity and stable pricing.
Polished wafer prices are expected to rise 40% in 2027, with average wafer prices climbing from $92 in 2026 to $122 in 2027 and $166 by 2028. Additionally, quarterly wafer shipments are projected to reach 16.1 million in 2027, up from 11.9 million in 2026.
The players
TSMC
This major semiconductor manufacturing company is a central player in the global AI supply chain and a primary user of epitaxial wafers.
The details
The industry is seeing the highest price hikes for polished wafers, while epitaxial wafers—the primary type used by TSMC for AI hardware—are expected to see price increases between 15% and 25%. To manage these shifts, firms are increasingly finalizing long-term contracts to ensure supply stability across major manufacturing hubs in Asia and Germany.
Timeline
In 2026, the average price per silicon wafer was $92.
During 2027, polished wafer prices are expected to increase 40%.
By 2027, CoWoS production capacity is projected to jump 70.9%.
In 2028, the average price per silicon wafer is estimated to reach $166.
The Tech Race
The projected 70.9% increase in CoWoS production capacity marks a critical scaling effort in the semiconductor industry. This expansion follows the broader pattern of increased demand for AI-ready semiconductor architectures.
Rising costs for raw silicon wafers may eventually influence the production expenses for a wide range of computing devices and AI-integrated hardware. Consumers could see these supply chain pressures reflected in future pricing for high-end GPUs and enterprise AI infrastructure.
The takeaway
The semiconductor supply chain is pivoting toward long-term contract models to manage the volatility of raw material costs. Readers should anticipate that sustained AI demand will continue to redefine pricing benchmarks for basic hardware components through 2028.
Further reading
For more background on the global market for chip materials, visit the Semiconductors section.
Source note: This article includes information reported by Wccftech.
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