Vanguard International Semiconductor sees AI demand lift mature-node prices through 2027

The sustained demand for PMICs driven by AI servers is reshaping the mature-process market, signaling a fundamental shift rather than a temporary fluctuation. Upstream foundries like SMIC and TSMC are prioritizing capacity allocation to AI-relevant nodes, exacerbating supply constraints for traditional consumer chips. Midstream design firms must reassess IP sourcing strategies, favoring flexible mature-process platforms. From a compliance standpoint, geopolitical tensions are accelerating supply chain localization, increasing operational costs and exposure to technology restrictions. Competitors may pursue mergers or strategic partnerships to secure key process nodes and reinforce market dominance. Over the next 12–24 months, mature-process pricing will remain elevated through 2027, fostering capital inflows but constraining long-term expansion due to high investment requirements and policy uncertainties.