AI demand is no longer lifting only the most advanced parts of the semiconductor market. After years of pressure from intense mature-node price competition between 2023 and 2025, Taiwan’s foundry sector is seeing a stronger recovery as artificial intelligence-related orders spread into a wider range of chips and specialty manufacturing processes.
The AI boom first centered on high-performance GPUs and HBM memory, but the supply chain impact is now moving further downstream. Demand is rising for power management ICs, power components, networking chips, and other chips built on specialty and mature-node processes. These components are essential for AI servers, data centers, high-speed connectivity, and energy-efficient computing infrastructure.
This shift is creating fresh momentum for Taiwan-based foundries that specialize in mature-node and specialty process technologies. As AI data centers expand, customers need more than processors and memory. They also require reliable power control, efficient thermal and energy management, faster networking, and stable supporting chips. That has made mature-node capacity more valuable again after a difficult pricing environment in recent years.
Another key factor supporting the market is the easing of aggressive price cuts from mature-node manufacturers in China. From 2023 through 2025, heavy price competition weighed on foundry quotes and reduced profitability across parts of the industry. Since the start of 2026, however, that pressure has softened, allowing Taiwan foundries to raise prices more broadly.
The result is a more favorable pricing environment for mature-node semiconductor manufacturing. With AI-related demand expanding into more chip categories and price competition becoming less severe, foundries in Taiwan are positioned to benefit from improved revenue trends.
The recovery also highlights how the AI supply chain is becoming more diversified. While advanced chips remain at the center of the artificial intelligence race, the supporting semiconductor ecosystem is increasingly important. Power management chips, networking components, and specialty process products are now playing a larger role in enabling AI infrastructure at scale.
As global investment in AI servers and data centers continues, mature-node foundries could see sustained demand from customers seeking stable supply and proven manufacturing technologies. This broader AI-driven semiconductor growth may help strengthen utilization rates, improve pricing power, and support revenue growth across Taiwan’s foundry industry in 2026.
