May 15, 2026 – The global semiconductor wafer industry is undergoing a profound strategic restructuring in 2026, characterized by intensified capacity adjustments, aggressive technological investments, and accelerating localization trends. Driven by surging demand from AI data centers, automotive electronics, and industrial applications, both domestic and international players are reshaping their layouts, with distinct focuses on mature processes and advanced manufacturing respectively.
According to the latest quarterly report from SEMI’s Silicon Manufacturers Group (SMG), worldwide silicon wafer shipments increased 13.1% year-on-year to 3,275 million square inches (MSI) in the first quarter of 2026, though they declined 4.7% sequentially due to seasonal factors. Ginji Yada, Chairman of SEMI SMG, noted that demand for silicon wafers related to AI data centers remains strong, extending from advanced logic and memory chips to power management devices, driving a broad-based industry recovery as wafer inventories are gradually absorbed.
In the Chinese market, major wafer foundries and related enterprises are accelerating capacity expansion and resource integration through diversified capital operations to strengthen their industrial barriers. SMIC, a leading domestic foundry, established a wholly-owned subsidiary Shanghai Xinsanwei Semiconductor Co., Ltd. on March 31 with a registered capital of 432 million US dollars, focusing on 3D IC and advanced packaging technologies—a strategic move to tap into the "second curve" of chip performance improvement amid the approaching physical limits of Moore’s Law. Meanwhile, Huahong Semiconductor’s application for acquiring 97.4988% equity of Huali Microelectronics has been accepted by the Shanghai Stock Exchange, a move expected to integrate technologies and capacities, adding 38,000 wafers per month of 65/55nm and 40nm production capacity upon completion.
Jinghe Integration is also making dual moves in the capital market: it re-submitted its H-share listing application to the Hong Kong Stock Exchange on March 31 to secure funds for 22nm process R&D and global layout, while its subsidiary Jingyi Integration saw its registered capital surge 9900% to 2 billion yuan to support the construction of a 12-inch wafer production line with a monthly capacity of 55,000 wafers. Additionally, OmniVision Group announced a 1 billion yuan investment in Rongxin Semiconductor, strengthening the strategic synergy between IC design and wafer manufacturing to ensure stable capacity supply amid supply chain fluctuations.
Domestic progress in 12-inch wafer localization is particularly notable, with leading enterprises breaking through core technical barriers. As the top domestic 12-inch wafer manufacturer, Shanghai Silicon Industry sold 6.4163 million 300mm wafers in 2025, a year-on-year increase of 27.01%, with its products passing 28nm full-process verification by SMIC and completing R&D validation for 14nm logic chips. Leon Micro became the first domestic enterprise to mass-supply automotive-grade 12-inch wafers, which have passed AEC-Q100 certification and entered the supply chains of BYD and NIO. SEMI predicts that China’s mainland 12-inch wafer capacity will reach 3.21 million wafers per month in 2026, accounting for about one-third of the global total.
Internationally, major semiconductor giants are focusing on advanced processes and global capacity restructuring to seize the high ground in AI chip manufacturing. Intel recently announced its participation in Tesla’s "Terafab" project and repurchased a 49% stake in its advanced wafer fab (Fab 34) in Ireland for 14.2 billion US dollars, strengthening its layout in AI and wafer manufacturing. Texas Instruments (TI) has completed the construction of its first 300mm wafer fab in Sherman, Texas, part of its 30 billion US dollar commitment to expand U.S. semiconductor capacity. The fab will focus on mature process nodes (28nm and above) widely used in automotive and industrial applications, with TI aiming to operate at least six 300mm fabs globally by 2030.
A notable trend is the strategic contraction of international giants in mature processes, creating opportunities for domestic players. SUMCO recently delayed the construction of two new wafer fabs and gave up over 50 billion yen in Japanese government subsidies to focus resources on advanced processes below 2nm. Shin-Etsu Chemical and GlobalWafers have also shifted their expansion plans to advanced processes, gradually shrinking mature process capacities. Meanwhile, TSMC and Samsung are reducing or shutting down some 8-inch wafer production lines to allocate resources to more profitable 12-inch and advanced process fabs, leading to a 2.4% expected contraction in global 8-inch capacity in 2026 and a 5%-20% price increase by some foundries.
Industry analysts point out that 2026 is a critical year for the global semiconductor wafer industry. The dual drivers of AI demand and domestic substitution are reshaping the industrial pattern, with mature processes moving toward 12-inch platforms and advanced processes competing fiercely. While domestic enterprises are accelerating localization, they still face challenges such as structural gaps in high-end wafers and fierce competition in mid-to-low-end products. Looking ahead, SEMI forecasts that the global 12-inch wafer market will exceed 20 billion US dollars by 2030, with China accounting for over 40% of the market share, highlighting the huge growth potential for domestic players.