Exclusive: STATS ChipPAC readies broad packaging price hikes on AI-driven OSAT squeeze

The surge in AI chip demand is intensifying supply chain imbalances in packaging and testing, with STATS ChipPAC preparing for significant price hikes in 2026. This reflects a broader trend where rising demand from AI applications is pushing OSAT capacity to its limits, forcing cost transfers through pricing adjustments. Upstream foundries are ramping up high-density packaging orders, increasing material and equipment costs. From a compliance standpoint, geopolitical tensions are reshaping supply chains, especially in cross-border operations involving Taiwan, China and Singapore, raising operational and risk management costs. Competitors such as PSMC and JCET may follow suit, triggering a sector-wide price escalation. In the next 12 to 24 months, sustained AI growth could further elevate packaging costs, compelling downstream designers to accelerate adoption of advanced packaging technologies and heterogeneous integration.